Kindred Group Completes £25M Casino Acquisition In Belgium
Kindred Group has struck a deal to acquire all shares in Blankenberge Casino-Kursaal (Blancas) NV, which operates Casino Blankenberge in Belgium. The deal was made with The Rank Group Plc. which is the parent company of Casino Blankenberge. The Kindred Group made the announcement in a press release stating that they would be paying a £25 million acquisition fee on a debt-free and cash basis.
Once the acquisition is complete, the payment will be settled in cash. This move would improve the Kindred Group’s business position and commitments in Belgium. Kindred will also continue to offer Belgian consumers an enticing range of gaming services. Belgium currently has nine land based casinos and Blankenberge casino is one of the more popular casinos in the country.
The Rank Group Plc has owned Blancas NV since 1998. In the 12 months up to June 2020, Blancas generated €10 million in revenue, reporting an operating profit of €3 million.
Kindred Expands its Reach in Belgium
Since 2012, Kindred has partnered with Blancas through its Unibet brand to deliver online casino and poker offerings to players in Belgium. Kindred said in a statement that the acquisition would enhance its long-term operations and commitments in Belgium and would allow Kindred to continue to give Belgian customers an exciting gaming portfolio.
The deal is subject to regulatory approvals but is expected to be finalized in Q4. Blancas NV will work under the current management of Dominique De Wilde and continue to operate as a separate organization within the Kindred Group. Once the acquisition is finalized, Kindred will have access to one of Belgium’s nine land-based casinos.
This strategic acquisition bodes well for Kindred as Blancas NV has renewed the casino’s concession deal with the city of Blankenberge. This will ensure that a new operating license with a 15 year validity will kick-in from January 2021. For the Rank Group, the acquisition will see it pull out of the casino market in Belgium, having shut down operations in the Middlekerke municipality in 2017.
Rank Group Will Exit Belgium Market
The Rank Group which operates Grosvenor Casinos said that net proceeds from this sale would be used to minimize its debt, for corporate purposes in general, as well as to sustain its focus on restructuring its core business.
The Belgium casino business was not a core part to Rank’s international expansion ambitions since it was a standalone casino. The £25 million turnover will help fund the liquidity and potential growth strategies of the organization.