Buy-out firms Blackstone and Cerberus bid for Cirsa Gaming

Industry insiders have disclosed this week that U.S. buyout firms Blackstone Group LP and Cerberus Capital Management are among funds considering bids to acquire Spanish casino and bingo-hall operator Cirsa Gaming Corp. Founded in 1978 and based in the Catalan city of Terrassa, just outside of Barcelona, Cirsa is Spain’s biggest casino and bingo-hall operator. It counts about 134 casinos, more than 41,500 recreational machines, 68 bingo halls, 171 arcades, 2,000 sports betting outlets and more than 3,000 lottery terminals in Spain, Italy and in Latin America.

Advent International and Apollo Global Management LLC are also weighing offers for the business, the insiders confided, asking not to be identified because the deliberations are private. Cirsa has also attracted interest from other gaming companies, the people said. Owned by billionaire Manuel Lao Hernandez, it could fetch an enterprise value of 2 billion euros ($2.45 billion) in a potential sale, they said.

Non-binding bids for the business are due in the coming weeks. Potential buyers have expressed concerns about the company’s exposure to Latin America as well as investing in the gambling industry, the people said.

Cirsa’s 450 million euros of bonds due May 2021 dropped half a cent to 103 cents on the euro on Friday, the lowest level since July 2016, according to data compiled by Bloomberg.

Cirsa is working with financial advisory firm Lazard Ltd. on a review of options ranging from an outright sale to the sale of a minority stake or an initial public offering.

A spokeswoman for Cirsa said the company is still evaluating all options and meeting with investment funds as part of the review, declining to provide further details.