Bingo, casino and online gaming company Rank Group has made a conditional agreement to acquire Gala Casinos from Gala Coral Group, making it the largest casino operator in the UK.
The £205m acquisition, which includes 23 casinos in the UK, is to be funded by new three-year bank facilities totalling £175m, together with existing bank facilities.
The purchase, which is set to take place in the third quarter of the current year, will make Rank the largest casino operator in the UK by number of casinos with 58 operating venues and 13 non-operating licences.
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Rank's majority shareholder, Rank Assets, has given an irrevocable undertaking to vote in favour of the resolution which proposed at the next general meeting.
Ian Burke, Chairman and Chief Executive Officer of Rank said: "This acquisition will deliver a step change in Rank's earnings by capitalising on our proven record of operational excellence in the British casino sector and will be earnings enhancing in the first full year of ownership.
"By rolling out the 'G Casino' format into the Gala estate and expanding the Grosvenor Casino brand into 11 new cities, we will accelerate the growing awareness of the brand and support the development of a multi-channel gaming business."
The acquisition is expected to be earnings-enhancing within the first full financial year of ownership, the firm added.
Gala Coral Group's casinos in Dundee and Gibraltar, its non-operating licence for the City of Westminster and all of the central management functions previously associated with Gala Casinos are not included in the scope of the acquisition.
NR
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