Operator News

Panama – Cirsa notifies Panamanian authorities of Blackstone deal

Spanish gambling company Cirsa has officially notified the Panamanian authorities and other countries of the sale of its casinos, to the Private equity firm Blackstone Group.

The marketing and communication department in Spain informed Panama America that they have already made the corresponding arrangements to formalise the operation in Panama and with respect to the name, they said that until now there is no plan to change it.

There has been little news on the operation since April when Cirsa and Blackstone issued a joint statement announcing the sell-off. Both companies have reached agreement on a deal under which Blackstone, one of the world’s leading investment firms, will acquire Cirsa’s casino, bingo and sports betting operations in Spain, Italy and Latin America, with the exception of the company’s operations in Argentina which will operate as a separate entity under Cirsa founder Manuel Lao Hernandez. 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 assume the chairmanship of the Group.

In February, it was reported that North American hedge fund giants including Advent International, Apollo Global Management, Blackstone Group and Cerberus Capital Management were among the investors believed to be looking at a potential €2bn takeover of the Spanish gaming giant.

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. In March, Cirsa reported an operating profit in 2017 of €427m meaning a growth of 7.2 per cent compared to 2016 during a time of heavy investment for the company in terms of new properties. Cirsa incorporated 25 new casinos in Latin America in 2017 with 17 bought from Novomatic in Peru, one in Costa Rica, three in Panama, two in Colombia and two in Mexico. It also bought 75 per cent of the machine operator of Barcelona Miky during the period, as well as a bingo hall in El Vendrell in Tarragona, Spain and in Mestre in Venice, Italy, as well as the incorporation of five new slot parlours in Spain.