Supplier News
UK – Ladbrokes names new company as Ladbrokes Coral
By Phil - 24 July 2015
Ladbrokes and the Coral Group have announced that the proposed recommended merger between the two companies will create Ladbrokes Coral, a leading multi-channel and internationally diversified business.
This new company, they believe, will have a compelling strategy to accelerate online growth, deliver substantial synergies and drive value. It is anticipated that on aggregate Ladbrokes Coral will have net revenue of around £2.1bn and £392m of EBITDA (excluding cost synergies of at least £65m).
Peter Erskine, Chairman of Ladbrokes, said: “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. 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.”
Rob Templeman, Chairman of Gala Coral, said: “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. 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.”
Ladbrokes and Gala Coral have agreed the terms of the proposed merger that include Coral Retail, Eurobet Retail and Gala Coral’s Online businesses. On completion the present Ladbrokes CEO, Jim Mullen, will be CEO of Ladbrokes Coral plc. Completion is conditional upon shareholder approval and clearance from the Competition and Markets Authority.
