PRN: Betfred Confirms the Successful Acquisition of the Tote for GBP265m
Betfred Confirms the Successful Acquisition of the Tote for GBP265m
LONDON, June 3, 2011 /PRNewswire/ --
- Racing to Benefit From More Than GBP155m Over 7 Years
Betfred is pleased to confirm that it has entered into binding contracts with the Secretary of State for the Department of Culture, Media and Sport to acquire the successor company to The Horserace Totalisator Board (the "Tote") for GBP265m. This comprises an initial payment of GBP150m and further amounts, including interest accrued, of GBP115m. As part of the transaction, Betfred will be awarded an exclusive seven year licence to operate pools betting on UK racecourses and is acquiring the Tote's 517 shops and online businesses.
Partnership with Racing
- Betfred commences a long-term working partnership with Racing to develop jointly, and further commercialise, the world's leading Racing industry
- Racing to benefit from more than GBP155m over 7 years
- Betfred committed to payments to Racing of GBP11m to March 2012 and an expected GBP9m annually for the subsequent six years thereafter
- Racing will also benefit from over GBP90m, representing 50 per cent of net proceeds to Government
- Betfred to establish the Tote Racing Development Board with members from the key racecourse groups, alongside Betfred, focused on the commercialisation of the Tote for the benefit of Racing and Betfred
- The Tote brand will remain on all UK racecourses
- The enlarged Betfred Group will be the country's biggest sponsor of Racing
- Betfred will develop Racing's Big Society Initiative, which will raise money for charities and encourage more people to go Racing
Attractive employment opportunities within the enlarged Betfred
- Betfred provides strong prospects and opportunities to Tote staff after a prolonged period of uncertainty
- Betfred is a well-capitalised and stable custodian for the Tote
- Enlarged group will employ approximately 9,000 and be a leading employer in the North West
- Attractive and enhanced career prospects across the group
- Betfred looks forward to benefiting from the skill set and specialist expertise of Tote employees
Good news for customers
- Betfred LBO estate now in excess of 1,350 - the Tote shops will be rebranded Betfred
- New opportunity for punters across the UK to enjoy value, unique bonuses and innovative bets from the Bonus King
Betfred's CFO and Chairman of the newly formed Tote Racing Development Board, Barry Nightingale, said:
"We are very pleased to have been selected by Government to be the new, long-term owners of the Tote. I am absolutely confident that, working with Tote management and employees, we will together be able to grow the business, develop the pool and, through its success, be able to return more to the Racing industry."
Executive Chairman of Betfred, Fred Done, said:
"Buying the Tote has been an ambition for years, so I am absolutely delighted. The Tote is an opportunity I just could not miss. I love racing and I believe we have the greatest in the world. Over the coming months I will develop the Tote's relationship with the sport into a highly successful commercial partnership.
"I am thrilled and excited by the opportunities ahead, I extend a big welcome to Tote staff and, now this long process is over, I can't wait to get going with the job of bringing our businesses together."
Notes to editors
Clasen+Co. Limited and Global Leisure Partners LLP are acting as joint financial advisers to Betfred in relation to the acquisition.
The transaction is funded by new banking facilities from a consortium of banks led by RBS, Barclays, Santander, Co-op and Yorkshire and is expected to close in July.
As part of the transaction, Betfred will pay GBP25m to the Tote's defined benefit pension scheme, the Horserace Totalisator Board (1968) Pension Scheme, which has been agreed with the scheme's trustees and has received clearance from the Pensions Regulator.