Private equity firms expected to battle it out for William Hill’s non-US business
Caesars looking to shed its non-US business, including UK land-based casinos, as part of the deal
Former Sky Betting & Gaming owner CVC Capital Partners and private equity firm Apax Partners have reportedly emerged as potential buyers of William Hill’s non-US assets.
Over the weekend, The Sunday Telegraph suggested the two firms were eyeing up separate £1.5bn ($1.97bn) rival bids for the 86-year-old bookmaker’s international business, which prospective new owner Caesars has deemed surplus to requirements.
The same newspaper claimed US-based asset management outfit Apollo Global, which failed with a bid to acquire the entire William Hill business back in September, is set to return with a fresh bid for the non-US assets.
Rival broadsheet The Times believes Apollo would look to back Hills’ current management team, led by chairman Roger Devlin, CEO Ulrik Bengtsson and CFO Matt Ashley.
However, any deal could only proceed once the proposed $3.7bn takeover by Caesars Entertainment has been finalized, a deal which is expected to complete in H2 2021. William Hill shareholders will vote on whether to accept the offer on November 19.
Betfred and 888 had previously been rumoured as suitors for Hills’ international business, with 888 CEO Itai Pazner suggesting the assets “definitely fall within the scope” of the operator’s M&A strategy.
Caesars, which owns a 20% stake in William Hill US, has publicly stated its intention to carve out Hills’ non-US assets in order to focus exclusively on the US market, while The Times has claimed Caesars will look to shed its own non-US business, including its UK land-based casinos, as part of the bumper deal.
In the UK, Caesars operates seven casino properties, while the group also operates flagship land-based casinos in Egypt and South Africa.
CVC Capital Partners acquired a controlling stake in Sky Betting & Gaming in December 2014 for £800m before selling the business to The Stars Group in 2018 for £3.5bn, representing a 337% profit.
Apax Partners focuses solely on long-term investment in growth companies across four global sectors: technology and telecommunications, services, healthcare and consumer products.
The firm recently advised Genius Sports Group on its forthcoming IPO via a special purpose acquisition company (SPAC) involving dMY Technology Group II.