Gala Bingo Sold for £241 Million 0
Posted on 30, October 2015
in Category Bingo News
Gala Bingo is just undergoing a sale and splitting from the Coral Bookmakers. Gala Bingo has sold all of it’s land based bingo estate to the equity investment firm Caledonia Investments. The group headed up by Simon Wykes will continue to operate under the Gala Bingo but brand but it is believed that the sale does not include the Online Bingo division. Mr Wykes is said to be delighted at having the backing of Caledonia Investments.
Gala Bingo is the UK’s largest bingo club operator with 130 sites and represents around 38 percent of the commercial bingo land based market.
Head of unquoted investments at Caledonia, Dunan Johnson commented about the bingo business’ “defensive, enduring business model” offered strong cash generation and an attractive dividend yield, which “fits ideally with the investment criteria sought by Caledonia”.
Gala Coral’s chief executive,Carl Leaver mentioned that the sale of the clubs followed a “competitive process”, and marked “another transformative step for Gala Coral Group, following the turnaround of the business over the past few years”.
Caledonia are no strangers to investing in businesses in the entertainment’s sector since they have interests in Park Holidays, the UK caravan park destinations.
After many years of battling against gambling reform, smoking ban, taxation, land based bingo is once again becoming an attractive and lucrative business to invest in. The government recently halved the bingo duty and many clubs are experiencing an increase in footfall. Electronic bingo in clubs is also helping to stimulate revenue streams and growth.
Despite all the challenges it is great to see the likes of Gala, Mecca, Club 3000, Beacon, Castle etc continuing to develop the business and investing in modernisation of the clubs.