GVC boss softens tone on potential retail acquisition
Kenny Alexander says he “wouldn’t hesitate” to acquire business with high street presence after last year describing a retail move as “unlikely”
GVC Holdings “wouldn’t hesitate” to acquire a business with a retail arm, so long as it represented value for shareholders, the operator’s chief executive Kenny Alexander said today.
The comment, which followed the firm’s full-year results presentation, marked a significant shift in tone from the Scot, who last year described a GVC move into retail as “unlikely”.
In recent months, the firm has been linked with moves for William Hill and Ladbrokes Coral, and when speaking to analysts about the potential of GVC increasing its exposure to the UK market via acquisition, Alexander said the involvement of a retail arm would not be a hindrance.
“Would we not do a deal in the UK because of retail? No,” Alexander said.
“I’d much prefer to do online but if we have to do a deal that involves taking on retail, which could be in the UK or Italy, for example, then I wouldn’t hesitate to do it.”
When EGR asked Alexander last June to comment on the possibility of acquiring William Hill, the chief exec appeared less willing to entertain the idea.
“I’ve spent plenty of time in betting shops but I wouldn’t claim to know how to run them,” he said at the time. “So I think it would be unlikely we’d go down that route.”
Speaking to EGR Intel today, Alexander refused to comment on the rumoured merger talks with the two UK giants, however, made clear he wasn’t “fixated” on any particular operator.
“I’m pretty flexible in terms of geographies and verticals and I’m not fixated by any given companies,” Alexander said.
“Will we do a deal this year? Possibly,” he went on. “We look at a lot of stuff and if the right one comes along we’ll do it, but we don’t need to do anything as we are growing significantly right now.
“Our number one priority is organic growth but the fact is we built our business on the back of M&A and we’ve got very strong technology, very strong management and a very strong track record.
“So if we see any suitable M&A opportunities then we will definitely exploit them and we have the firepower in terms of financing to do it,” he added.
The firm today reported a 9% rise in full-year revenues and 26% increase in clean EBITDA for a period which included 11 months of operation as an enlarged group following the February 2016 acquisition of bwin.party.