Image: Rank is set to acquire 23 Gala Casinos

Rank Group has announced it has reached a conditional agreement to buy 23 Gala Casinos from Gala Coral Group in a move that will create the UK's largest casino operator.

The deal - worth a total cash consideration of £205m - also comprises three non-operating licences, although Gala Coral Group's casinos in Dundee and Gibraltar are not included.

Rank will expand its casino estate to 58 in the UK, with the rebranding of Gala Casinos to take its Grosvenor brand into 11 new cities. The G Casino format will roll out at nine sites.

The purchase and its related costs and expenses will be financed through a new three-year banking facility totalling £175m, together with the group's existing facilities

Rank chair and chief executive officer Ian Burke said: "This acquisition will deliver a step change in Rank's earnings by capitalising on our proven record of operational excellence in the British casino sector and will be earnings enhancing in the first full year of ownership.

"By rolling out the G Casino format into the Gala estate and expanding the Grosvenor Casino brand into 11 new cities, we will accelerate the growing awareness of the brand and support the development of a multi-channel gaming business."

The deal is expected to be completed during the third quarter of 2012, subject to approval of Rank shareholders and clearance from UK merger authorities.

Details: www.rank.com (Rank Group) (.pdf)

Details: www.galacoral.co.uk (Gala Casinos)

Image: ell brown/flickr