Blackstone acquires Spanish giant Cirsa

The Blackstone Group acquired 100 per cent of the Spanish gambling giant in a deal completed last Friday for an undisclosed figure.

Spain.- Spanish gambling group Cirsa was said to be on sale but there was some doubt regarding whether it would be bought this year. However, at the end of last week, owner Manuel Lao Hernández announced that he had reached an agreement with The Blackstone Group to sell 100 per cent of the company. The amount to be paid was not announced but Cirsa is estimated to be worth between 1,500 and 2,000 million euros.

In addition to the sale, Joaquim Agut, Cirsa’s CEO since 2006, will be appointed as the new chairman once the deal is completed. Mr Agut thanked Lao Hernández and said that he is responsible for the company’s massive growth since its foundation 40 years ago.

The Spanish multinational is one of the leading companies in the Spanish market and operates in several European countries, as well as in Latin America. The sale process had been announced months ago and there were even rumours that it would merge with another Spanish giant, Codere.

Cirsa’s EBITA is estimated to be around €400 million and had an income of €1,613 million in the last complete exercise (2016). It operates around 150 casinos worldwide, 160 gaming venues, 70 bingo rooms, 75 slot machine parlours and over 2,000 sports betting shops in Spain, Italy and Latin America.

Lionel Assant, Blackstone’s private equity director in Europe, said the group was “happy to make this investment” and said: “We’re excited to support Joaquim and his strategy in this new stage as well as the expansion of CIRSA both organically and through acquisitions and in new geographical areas.”