PPM and Duke Street Expand Gala Clubs

Gala Clubs, the subject of a GBP300 million buyout led by PPM Ventures last December in July acquired the Ritz Bingo business from Duke Street Capital for GBP36 million (ecu 53 million). Ritz Bingo was also the subject of a December MBO, led by HEV – now Duke Street Capital (story, page 4) – for a consideration of GBP30.5 million.

Duke Street Capital has invested GBP36 million in the enlarged Gala Clubs business and now holds a 25% stake. PPM Ventures, which underwrote a GBP111 million equity and loan package for the original Gala buyout, remains the largest shareholder with just under 40%. A portion of the original equity was syndicated to Royal Bank Development Capital and Legal & General Ventures prior to the Ritz acquisition. JP Morgan, which arranged debt funding for the original Gala buyout, underwrote additional acquisition debt for the Ritz deal.

The acquisition of Ritz takes Gala’s total estate to 147 clubs, securing the company’s position as the UK’s largest bingo chain. Brian Mattingley, chief executive of Ritz, is joining Gala as group finance and development director.