Done’s seven-year Tote chase in final furlong

A SEVEN-year long chase for state-owned bookmaker The Tote is entering its final furlong for North West bidder Fred Done.

Mr Done, owner of Betfred, will submit his offer for the Wigan-based business, along with a number of other bidders on Friday.

The veteran businessman told TheBusinessDesk.com: “All the funding is in place, we’ve got the support of the banks we need to do the deal.

“We know what the business is worth, I’ll pay a fair price, but I won’t over-pay for it. I think we”ve got more than a reasonable chance of success.”

The Tote was previously marketed for sale by the Labour government at around £400m, but it is only expected to fetch £200m.

Mr Done, who is being advised by Global Leisure Partners and boutique corporate finance firm Clasen, was coy on the level of his final offer, adding: “Three years ago there was all sorts of silly figures being mentioned in terms of its value, but the world has changed massively.

“We have got virtually no borrowings and are in a strong position to do a deal, but we will be in the hands of Lazards (the investment bank selling The Tote.”

Mr Done, believes his bid will protect more North West jobs than his rivals, which are likely to include Gala Coral, Irish firm Paddy Power and William Hill. 

“Geographically it is a perfect fit, we won’t need two head offices though – so either Wigan or Warrington would close, but we’d not make very many redundancies at all.”

If he wins the day, 517 Tote shops will be revamped and rebranded Betfred, giving the  Mr Done – who owns the business with his younger brother, Peter, a chain of 1,350 betting shops.

He said he had been eyeing The Tote, which has more than 500 staff at its Wigan base and made EBITDA of £34m in the year to March, for around seven years.

“It’s been on may radar for a long time. but the last three months we have stepped up a gear and been working flat-out on the bid.”