Credit Suisse leads deal to buy Danoptra
DANOPTRA, the Yorkshire-based gaming business, has been sold to a group of city institutions led by Credit Suisse Group.
The deal sees the new owners gaining a majority stake in the loss-making firm that owns the Bell-Fruit and Gamestec slot machine businesses, in return for £85m of new loan facilities.
Danoptra, which is based at Horsforth in Leeds, made almost £20m of losses last year and supplies and operates around 40,000 gaming machines in pubs, bars, leisure venues, betting offices, clubs, bingo halls and casinos across the UK including the market leading ‘Deal or No Deal’ quiz game.
Its Leisure Connections arm operates sports and leisure facilities for local authorities in the UK.
Chief executive Derek Lloyd said the refinancing and investment of new funds would strengthen its balance sheet and allow the group to finance its plans for future growth.
“The refinancing of Danoptra has attracted investment from a group of blue-chip investment institutions all of whom share our vision for the continued growth of Danoptra.
“Danoptra is at an extremely exciting period in its development. The management team is fully committed to continuing Danoptra’s strong track record of bringing innovative gaming products and leisure services to market,” he added.
Formerly known as Kunick, before it was taken private off the stock market in 2002, the group has seen a complete change of management in the last two years.
It made a loss of £19.904m in the 12 months to September 30, 2007, on turnover of £195m, compared to a £24.3m loss the previous year on sales of £183m.
However the group made operating profits of £10m last year compared to a £2m loss previously. Mr Lloyd said it had generated cash across all its divisions with its Bell-Fruit Group growing its market share in the UK and internationally, particularly in Spain.
The group said: “Across all its markets, Danoptra is seeing outstanding strategic opportunities and is seeking to capitalise on them with its new investor base.”
In January Gamestec won a £150m contract with pub company Punch Taverns to manage its gaming estate in 8,400 pubs across the UK.
It also supplies the Laurel Pub Company, which has a portfolio of 460 pubs and bars under the Slug & Lettuce, La Tasca, Yates and Hogs Head brands.
