Operator News
Spain – Blackstone wins out in race to buy Cirsa
By Phil - 30 April 2018
Private equity firm Blackstone Group has beaten off competition from Apollo Global Management to buy Spanish gambling company Cirsa.
The cost of the acquisition was not revealed although Cirsa had previously said it wanted between €2bn and €2.5bn.
Joaquim Agut, CEO of Cirsa since 2006, will also assume the chairmanship of the Group. Since its incorporation, he has transformed Cirsa and, among its achievements, it stands out that it has tripled the size of the company, substantially diversifying its game offer and international presence.
Lionel Assant, Head of Private Equity at Blackstone for Europe, said: “We are delighted to make this investment. Joaqui and his team have achieved profitable and outstanding growth over the past 12 years, making CIRSA a leading international operator in gaming and leisure. We are excited to support Joaquim and his strategy in this new stage as well as the expansion of CIRSA both at an organic level and through acquisitions and in new geographical areas.”
Manuel Lao Hernández added: “I have the sincerest gratitude to all those with whom I have had the pleasure of working during the last 40 years. With their support, passion and talent, Cirsa has become the leading company it is today. With the enthusiasm and ambition of Blackstone, I am confident that Cirsa will achieve great success in the future.”
Joaquim Agut said: “We would like to say thanks to Mr. Manuel Lao for his total dedication since he founded Cirsa 40 years ago. Mr. Lao has been key in the expansion of the company, which has earned him the utmost respect from both the Board and the entire industry. The company would not be where it is today without its strategic direction and exceptional leadership.”
“We are very pleased to have Blackstone as our new partner, since it shares our ambition to accelerate growth in key markets as well as the continuous improvement of our service offering and quality. Blackstone has a long history of supporting companies to achieve their goals. I hope to start this new phase in the company’s history. ”
Cirsa achieved an operating profit of €427m in 2017, 7.2 per cent more, while its operating income increased by 6.4 per cent to 1,7bn.
In the last year it has incorporated 25 new casinos in Latin America (17 in Peru, three in Panama, two in Colombia, two in Mexico and one in Costa Rica), bought 75 per cent of the machine operator of Barcelona Miky and incorporated five new gaming halls in Spain, among other operations.
Founded in 1978 and based in Terrassa (Barcelona) Cirsa manages 147 casinos, 178 salons, more than 75,000 recreational machines, 70 bingo halls and 2,000 sports betting points in Spain, Italy and Latin America.
