Tuesday, October 2, 2012 : GAUSELMANN MERKUR ACQUIRES MARWYN GAMING
Compliments long term strategy for UK gaming market
German Gauselmann Group-owned Merkur Casino UK Ltd (Merkur) has acquired the Marwyn Management Partners (MMP) wholly owned indirect subsidiary Marwyn Gaming Limited (MGL) for a gross consideration of GBP76 million in cash.
Marwyn Gaming Limited includes all the gaming divisions within the MMP group being Praesepe Plc, Restcare Limited, Baleday Limited and Beacon Bingo Limited which in total comprise 159 Adult Gaming Centres, nine Bingo Clubs, five Family Entertainment Centres and Internet business, Beacon Bingo Online.
Following repayment of debt and debt related items, adjusting for target net debt remaining on the balance sheet and payment of transaction related fees, the sale is expected to represent net cash available to MMP of approximately GBP16 million, with a further GBP2.7 million paid into an escrow account in relation to various indemnities given to Merkur under the sale and purchase agreement.
Ulrich Wüseke, chief financial officer of Gauselmann AG, said: "We are very pleased to announce the purchase of MGL which fits perfectly with our long term strategy for the UK gaming market. In this deal Deutsche Bank AG acted as our financial advisor. True to our dedication to offer entertainment and gaming with stakes and prizes anywhere at any time, the operating business of MGL is an ideal complement to our existing activities in the UK."
The newly formed Gauselmann company, Merkur Casino UK Ltd, will be chaired by Wüseke while Praesepe founder Nick Harding will serve as its chief executive officer.
Praesepe founder, Nick Harding added: "I am delighted that an organisation of this calibre has made such an investment in our business and, for that matter, in UK gaming. Even against the backdrop of the double dip recession and the handbrake of limited investment, my team has registered a series of very significant successes, which have cemented our position as operators of the most successful gaming brands on Britain’s high streets. The financial confidence that we now have will allow us to drive forward and implement the progressive initiatives which I believe will transform the sectors that we operate in.”