The owner of Hove greyhound racing track, Coral Eurobet, has been snapped up by bingo hall and casino operator Gala to create a £4 billion gaming empire.

Gala has unveiled a £2.18 billion deal that adds the 1,267 betting shops of Coral to its existing business of 167 bingo clubs and 30 casinos.

Preparations for a flotation of Coral had been in motion since the start of this year but a spate of media reports recently suggested a trade sale was the more likely move.

The enlarged company will employ 17,000 staff and have more than 2.2 million customers.

Gala is owned equally by private equity firms Candover, Cinven and Permira, which are ploughing in an additional £275 million each to pay for the deal.

It comes during a period of rapid change in the gaming industry and follows the sale of the betting shops of Stanley Leisure to larger rival William Hill for £504 million in May.

The £4.64 billion flotation of online poker giant Party Gaming in June kept the spotlight on the sector, which has also seen listings for internet gaming firms Empire Online and 32Red this summer.

Gala and Coral have online operations ranging from blackjack to roulette and these will now be brought together to maximise future growth.

Neil Goulden, chief executive of Gala, said the two businesses were an ideal fit and a tie-up offered significant opportunities to boost revenues.

He added: "This is the perfect time to merge Gala and Coral Eurobet as both companies seek to take maximum advantage of the deregulating gaming market."

Wednesday, October 12, 2005