888 Holdings to Acquire Non-US Assets of William Hill in a £2.2-Billion Deal with Caesars Entertainment

British online gambling group 888 Holdings has won the competition for the non-US business of William Hill. Earlier today, it was announced that the company has reached a £2.2-billion agreement with Caesars Entertainment, under which it is to take over William Hill’s European assets, including the brand’s 1,400 UK betting shops in a deal that will finally see them return to British hands.

In a statement, 888 Holdings said it intends to raise about £500 million by initiating a capital raise to issue new equity. The company further noted that it expects costs savings of no less than £100 million annually from the purchase. In order to fund the acquisition, the British online gambling company obtained debt financing of about £2.1 billion from Morgan Stanley, J.P. Morgan and Mediobanca, including term loans worth approximately £1.6 billion.

According to the British gambling operator, the acquisition deal would result in the establishment of a combined group that employs more than 12,000 people.

As Casino Guardian reported earlier this week, 888 Holdings had emerged as the front-runner for the European assets of William Hill after the company managed to outbid its main competitor Apollo Global Management.

William Hill’s UK Retail Business Back in British Hands

The international operations of William Hill are set to be acquired by 888 Holdings from Caesars Entertainment – the US-based casino giant that acquired the British gambling company in April in a £2.9-billion deal. The takeover agreement was confirmed by Tom Reeg, the CEO of the US casino giant, who also noted that the new owner of the European assets shares the same goals, approaches and longer-term ambitions of the business.

The takeover deal came as part of a wider consolidation wave in the gambling sector, with an increasing number of US companies buying out UK gambling groups to gain more expertise in the industry, as the US has opened up to sports betting after years in which this form of gambling was banned in the country.

At the time when Caesars Entertainment acquired William Hill, the Las Vegas-based casino giant made it very clear that it would be seeking to dispose of the British company’s European assets, as it was only interested in its US business. This triggered an eager competition for the international unit of William Hill.

At first, Apollo Global Management had been considered the favourite to win the competition, especially considering the company’s previous attempt to purchase William Hill in whole before being outbid by Caesars Entertainment.

The CEO of the British gambling operator, Itai Pazner, described the acquisition of William Hill’s international unit as an event of great importance for 888 Holdings. He further noted that at the time when the transaction is completed the combined group will be among the biggest online gambling and betting companies on a global scale, featuring exceptional brands, great product and service diversification, superior scale and a platform for further growth.

For the time being, it remains unclear what will happen to the UK betting shops of William Hill. Earlier in the bidding process, 888 Holdings had hinted that it might consider keeping the retail gambling unit. Another British and Irish company – Betfred – had demonstrated its interest to purchase the outlets, so it would now be up to 888 to decide whether to continue operating the retail business or not.

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Olivia Cole

Olivia Cole has worked as a journalist for several years now. Over the last couple of years she has been engaged in writing about a number of industries and has developed an interest for the gambling market in the UK.
Daniel Williams
Casino Guardian covers the latest news and events in the casino industry. Here you can also find extensive guides for roulette, slots, blackjack, video poker, and all live casino games as well as reviews of the most trusted UK online casinos and their mobile casino apps.

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