Global gaming giant snaps up Playnation
CHESHIRE company Playnation has been bought by Austian gaming group Novomatic, two years after a MBO backed my Manchester-based private equity firm Palatine.
Palatine, which spun the business out of US firm Inspired Gaming, has made a 2.5x return on its investment. It appointed retail veteran and Pets at Home founder Anthony Preston as chairman to help steer its growth.
Runcorn-based Playnation operates around 20,000 gaming machines nationwide and has annual revenies of £32m – its new owner has annual sales of €3.8bn.
Playnation, which currently employs over 700 staff, partners with high profile names in the leisure sector across holiday parks, motorway services, bowling centres and airports, with clients including Bourne Leisure, Park Resorts, Parkdean, Moto, Welcome Break and Roadchef.
The company has achieved significant growth under Palatine’s ownership, a contract extension on with MOTO, the UK’s largest provider of motorway service stations, was a recent highlight.
Adam Hodges, Playnation’s chief executive, said: “Since building the business with Palatine in 2013, we have taken a firm hold of the sector and formed some strong partnerships across the UK with our clients.
“Having a private equity backer has given us the contacts and resources to develop a strong management team, and the potential for future growth is enormous. NOVOMATIC offers us a unique and exciting opportunity to break into new markets and establish the Playnation brand more widely in the coming years.”
Beth Houghton, investment director at Palatine Private Equity, said: “Since our investment in Playnation we have seen the business achieve exceptional growth in the family entertainment sector, capitalising on the buoyant market conditions.
“With the business now at a point in its growth cycle where an international buyer can take it onto the next stage, Novomatic is the perfect strategic partner to help achieve Playnation’s long-term objectives. I have enjoyed working with Adam and the management team and wish them all the success for the future.”
Corporate finance adviser Clearwater International, led by managing partner Phil Burns and director Rob Burden, advised the Playnation shareholders on the deal. This is the second time that Clearwater has worked with the business, advising on the MBO in 2013. Gateley provided legal advice.
