Ladbrokes has announced the completion of its proposed merger with rival operator Gala Coral, in a deal that will lead to the creation of a business worth approximately £2.3 billion (€3.2 billion/$3.6 billion).
Both businesses expect the newly branded ‘Ladbrokes Coral’ operation to boast net revenue of £2.1 billion as well as earnings before interest, tax, depreciation and amortisation of £392 million, excluding cost synergies of at lest £65 million.
Under the merger agreement, Ladbrokes will issue new ordinary shares to the existing shareholders of Gala Coral representing 48.25% of the new combined entity, while existing Ladbrokes shareholders will own 51.75% of the business.
Jim Mullen, currently serving as chief executive of Ladbrokes, will take on the same role within the new business.
Andy Hornby, former chief executive of bailed out bank HBOS and current Gala Coral chairman, will become chief operating officer of the merged entity and will be responsible for its estate of betting shops and digital operations.
Gala Coral chief executive, Carl Leaver, will become executive deputy chairman for a term of 12 months post completion and will lead delivery of synergies.
In addition, John Kelly, senior independent non-executive director of Ladbrokes will take the role of non-executive chairman, while Gala Coral chief financial officer, Paul Bowtell, will take the same role at the combined company.
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