The Rank Group Plc reached an agreement with Kindred Group to sell its Blankeberge Casino in Belgium. The £25 million acquisition is expected to be completed in Q4 2020.
Kindred to Acquire Blankeberge Casino from Rank Group
The leading online gambling operator Kindred Group has announced it will acquire 100% of the shares in Blankenberge Casino-Kursaal (Blancas) NV, which operates Casino Blankeberge in Belgium, from The Rank Group Plc. According to Kindred’s press release, the acquisition price will be £25 million on cash free and debt free basis.
The payment itself will be settled in cash upon completion of the acquisition. With this move, the operator will solidify its market presence and commitments in Belgium. Furthermore, Kindred will also continue its attractive broad offering to Belgian customers. The license holder and operator of the Blankeberge casino, Blancas NV is one of the nine land-based casinos operating in Belgium. Since 1998 the company is owned by The Rank Group Plc.
Focusing on the casino revenue, we see that for the last 12 months ending June 2020, Blankeberge casino generated approximately €10 million. Out of that total, the operating profit was approximately €3 million. Although regulatory approvals are still pending, it is expected for the acquisition to be completed in the fourth quarter of 2020.
Kindred Increases Its Presence in Belgium
Kindred’s commercial partnership with Blancas NV dates back to 2012. Their “A+ license” allows Kindred to offer live casino, online casino, and poker to customers in Belgium under the Unibet brand. With that in mind, the “A+ license” is legally required by the Belgian regulated market for online casino operations.
Besides the increase of market presence, with the acquisition, Kindred receives direct access to one of the nine casino licenses. With that in mind, Blancas NV has recently renewed its concession agreement with the city of Blankenberge which means that a 15-year concession will start in January next year.
The Blankeberge casino is the last casino by Rank Group in Belgium since the company discontinued its Middlekerke operations back in 2017. According to Rank Chief Executive John O’Reilly, the latest announcement about the selling of the casino “secures the next chapter for a great venue in Belgium and a team that deliver an excellent customer experience to the local community“. Furthermore, he added that the business was “non-core” to the company’s international growth plans and the £25 million will help Rank towards future growth initiatives.