Gala Coral and Ladbrokes Gambling Merger Announced

Published Saturday, July 25, 2015 - Online-Casinos.com
Gala Coral and Ladbrokes Gambling Merger Announced

Consolidation through mergers and acquisitions has been a staple of the online gambling industry since it began growing not all that long ago. The big wagering operators are getting bigger and more profitable as struggling start ups try to compete.

The recent announcement that Ladbrokes has agreed to buy Coral Group will create the largest gambling services vendor in Britain with the biggest number of betting outlets in the country. The £2.3b share-exchange deal creates a company with a £2.1b annual net revenue. The new entity will be listed on the stock exchange as Ladbrokes Coral Plc.

Ladbrokes Chairman Peter Erskine commented on the epic deal, “This is a major strategic step for Ladbrokes which firmly accelerates our strategy to improve the customers’ experience and build recreational scale. Ladbrokes and Coral are two highly complementary businesses, with rich heritage and brand presence across the UK and internationally,” Erskine continued to add,  “Together, we will create a leading betting and gaming business combining strong brands with an attractive multi-channel offering and an extensive national and international coverage. The transaction will provide an attractive opportunity to generate considerable value for both sets of shareholders, through significant operating synergies and a strong cash flow profile.”

Ladbrokes CEO Jim Mullen will head up the new venture with Gala Chief Executive Officer Carl Leaver becoming executive deputy chairman.

Gala Coral Chairman Rob Templeman also commented on the merger, “Today’s announcement is testimony to the track record and achievements of the Gala Coral team in delivering a significant transformation of the business over the past four years. This strategic combination is a natural fit and will offer further opportunities for growth. Coral Group’s online strength and high street presence will complement Ladbrokes’ established brand and footprint in the UK and internationally,” Templeman continued, “Together, the two businesses will have a strong digital presence with market leading technology, innovation and access to significant resources to drive continued growth and deliver enhanced returns for all shareholders.”

 

 

 

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