Gala Coral, the Nottingham-based betting and gaming company, has sold its Gala Bingo division to Caledonia Investments for £241 in a move that paves the way for its proposed merger with Ladbrokes.
The deal includes the sale of 130 Gala Bingo halls, which will continue to trade under the Gala brand upon completion.
Carl Leaver, chief executive of Gala Coral, said: “We are very pleased to have agreed the sale of Gala Retail, following a competitive process. The sale is another transformative step for Gala Coral Group, following the turnaround of the business over the past few years. We wish the Gala Retail team all the very best for the future and believe the business will continue to thrive under its new owners. Gala Coral Group remains focussed on growing and developing our retail bookmaking and online businesses, and concluding the proposed merger with Ladbrokes.”
Duncan Johnson, Caledonia’s head of unquoted investments, said: “Gala Bingo is well known to Caledonia’s Unquoted Investments team and we are delighted to be backing Simon Wykes and his team in the next chapter of its history. Its defensive, enduring business model, which delivers strong cash generation and dividend yield, fit ideally with the investment criteria sought by Caledonia for its unquoted portfolio and complements our other assets in the unquoted pool. As with our other unquoted investments, Gala Bingo will pay an attractive yield from inception.”