scotsman.com
BOOKMAKER William Hill today struck a £504 million deal to buy over the retail bookmaking business of gaming group Stanley leisure, making it Britain’s biggest bookmaking chain.
The deal, involving 624 shops, will give Hill 2237 high street outlets, edging out Ladbrokes - which has about 2100 - as the country’s biggest bookie.
William Hill said the takeover of the business, which trades as Stanleybet, would enable it to provide a presence in areas in which it is currently relatively under-represented, such as the north west of England, or unrepresented, such as Northern Ireland and the Republic of Ireland.
Although the deal still has to be approved by competition regulators, Hill said it did not expect any problems as the gambling market was highly competitive.
The takeover means that Hill would no longer be looking to return more than £450m of capital to shareholders, which it said it would do if no acquisition was forthcoming.
William Hill chief executive David Harding said: "This acquisition represents a rare opportunity for William Hill to substantially increase its distribution reach, whilst simultaneously realising benefits of scale"
Stanley chief executive Bob Wiper said the sale price of £504m was "very attractive" and the deal would allow it to concentrate on its casino business. Stanley, with 41 venues, is Britain’s largest operator of casinos. It has three sites in Edinburgh, including Cascades in Leith.
Hill also pointed out that the profitability of the Stanley estate was "substantially below" its own and offered opportunities for improvement.
The group also said that current trading was in line with expectations.
