Completion of Acquisition of Beacon Entertainments Limited - Regulatory Release
Praesepe plc ("Praesepe" or "the Company" or "the Group", AIM:PRA) is pleased to announce that it has today completed the acquisition of Beacon Entertainments Limited ("Beacon" or "the Target") ("the Acquisition") on the terms previously announced by the Company on 30 March 2010.
This is Praesepe's fifth acquisition, bringing the total number of operating sites in the Group's estate to 86, comprising 76 Adult Gaming Centres ("AGCs"), six bingo clubs and four Family Entertainment Centres ("FECs").
The Directors of Praesepe believe that the acquisition of Beacon is a transformational deal for Praesepe:
- Substantially increasing the Group's UK AGC footprint and entering the bingo market will create a step change in revenues and EBITDA
- The enlarged group capital structure, supported by additional leverage created by the enhanced debt facilities, will create a stronger financial platform for the Company
- The benefits of scale will enhance the prospects for earnings per share growth for shareholders
- The Board is strengthened by the addition of Brian Mattingley as an Executive Director for business development
The Acquisition is in line with Praesepe's stated strategy to build a diversified gaming group by pursuing acquisition and consolidation opportunities in the low stake high volume ("LSHV") betting and gaming sector in the UK and Europe.
Praesepe expects to announce its preliminary results for the 52 weeks to 27 December 2009 on 30 April 2010.
Nick Harding, CEO of Praesepe, said:
"This is a transformational deal for Praesepe as we continue to deliver our strategy. Beacon Entertainments gives us greater scale in our AGC business, which will help deliver shareholder value, and takes us into the mainstream bingo sector, which we believe is poised for growth. Taking on the debt previously held by Beacon also transforms our capital structure and gives us a flexible platform for growth."
We are very pleased to bring the prestigious Beacon Club in Cricklewood into the Praesepe portfolio. We feel confident that we can integrate this acquisition quickly and maximise the potential of all the new sites. I also welcome Brian Mattingley to the Praesepe Board, who brings with him significant experience in our industry."
Ends
For more information please contact:
Enquiries:
Praesepe plc
Nick Harding, Chief Executive Officer
Matthew Proctor, Chief Financial Officer
Tel: +44 (0) 7970 148 000
Tel: +44 (0) 7985 116 578
Oriel Securities Limited (Nominated Adviser and Broker)
Emma Griffin
Natalie Fortescue
Gareth Price
Tel: +44 (0)20 7710 7600
Brunswick
Chris Blundell
Tel: +44 (0)20 7404 5959
This Regulatory Release was also published on the London Stock Exchange
The announcment was also reported in the International Business Times
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