Caledonia Investment acquires Gala Bingo

Investment trust Caledonia Investment has completed the acquisition of retail bingo operator Gala Bingo from Gala Coral for £241m.

Caledonia said on completion of the acquisition, which is still subject to regulatory approval and finalisation of a £155m debt facility, it will invest £97.8m in cash to acquire 99.5% of Gala Bingo, with the management team subscribing a further £0.5m.

In a statement released on Monday, the FTSE 250 group said Gala Bingo has a 38% share of the UK retail bingo market and operates 130 clubs countrywide, with over 1.1m active members.

In the 12 months to 26 Septemebr, Gala Bingo reported earnings before interest, tax, depreciation and amortisation of £52.7m and profit before tax of £33m.

"We are delighted to have secured Caledonia's backing in the next phase of Gala Bingo's development,” said Gala Bingo’s chief executive Simon Wykes.

“We believe that Caledonia's longer term, supportive investment model will give Gala Bingo the stable platform from which we can continue to develop our market leading business."

Caledonia Investment shares were untraded at 2,420.00p at 0823 BST on Monday.