Ralph Topping rates Tipico as strong option for William Hill business

Ex-William Hill CEO Ralph Topping has said a reported bid from Tipico and majority owner CVC Capital Partners for Hills’ British business and continental European assets could help to reinvigorate its flagging retail business. CVC bought William Hill in 1999 for £825m in partnership with fellow private equity fund Cinven before floating the business on the London Stock Exchange three years later. The two private equity giants would later divest ownership of the business, with CVC later concluding similar deals to acquire Sky Betting & Gaming, which it later sold to Flutter Entertainment, and German giant Tipico in 2016. Reflecting on the role the firm played in spring-boarding Hills’ success, Topping cited many positives in working alongside the private equity investors. He said: “CVC were perfect to work for, they worked well with management and the team. “The company made money and we eventually ended up with a listing, so I think they’re very good. “They’ve done a great job with Sky Bet and with Tipico, and they’ve made money in gambling previously so they are pretty assured in everything they’ve done,” he added.

Last week, Sky News reported CVC-backed Tipico was readying a bid for the 87-year-old bookmaker’s non-US assets, which were put up for sale almost immediately by Caesars Entertainment following its £2.9bn takeover of Hills in April. Other reported bidders include private equity rival Apollo Global Management, as well as 888 and Betfred, with the international assets, including Mr Green, estimated to be worth as much as £1.5bn. Discussing the reported interest from Tipico, Topping said the operator’s private equity backing should not be a source of concern for William Hill executives. “If they [Tipico/CVC] do get it, you would have to welcome them as the owners of the business. “I don’t think there’s any fear in working with private equity. Based on my experience, it’s been positive – they are demanding, but not demanding in a ruthless sense. They are just keen to see progress being made and strategies being formulated. “For me, it will be interesting to see who they [Tipico/CVC] pick as the management team,” Topping continued. Topping, who served as Hills CEO between 2008 and 2014, highlighted retail as one area that could benefit substantially from a successful Tipico bid, referencing the betting firm’s strong retail footprint in its native Germany. Retail, Topping argued, has suffered from a lack of investment and “almost indifference” in comparison to online assets, something he believes Tipico could ultimately rectify. “If you get the management and understanding of retail business right, you can still make a good stab at it, and Tipico might plough more cash into retail than has been put in previously over the last six years,” Topping explained. “There’s definitely a need to get the management team and the structures right but there’s no reason why you couldn’t make retail work. “I think it would be a good thing if we got a quality management team in William Hill, with fresh eyes looking at the business from a continental perspective. That would get a tick from me as well. “Tipico will have worked in a really confusing and difficult regulatory environment in Germany, so they’d be more than capable of doing that,” he concluded.