Blackstone, a major player in private equity, is poised to shake up Spain’s gambling industry by taking CIRSA SA public on the Bolsa Madrid exchange come early 2025.
Spanish business publication *Expansión* reports that Blackstone has enlisted several banks to back CIRSA’s initial public offering in Madrid.
Speculation around Blackstone’s intentions with CIRSA dates back to 2022, when the Spanish gambling firm bounced back into profitability after the COVID-19 pandemic.
Blackstone has been the owner of CIRSA since 2018, having purchased it from its founder, Manuel Lao Hernandez, for €2 billion. This acquisition was part of Blackstone’s broader strategy to enhance its holdings in Europe’s gambling sector.
After undergoing a corporate restructuring in 2022, CIRSA has surpassed market forecasts. The company is projected to achieve more than €2 billion in net revenues for 2024, with an EBITDA between €680 million and €710 million and a leverage ratio ranging from 3.7x to 3.9x.
There are indications that Blackstone intends to list 20–25% of CIRSA’s shares on the Bolsa Madrid to generate between €700 million and €1 billion. This represents a tactical shift from the initial idea of a complete IPO.
Lazard has been appointed as the financial advisor for the IPO, while Barclays, Deutsche Bank, and Morgan Stanley will manage the global capital markets aspect.
CIRSA oversees more than 30,000 gambling machines in various leisure and hospitality settings across Spain, alongside 40 bingo halls, six casinos, and 237 arcades.
On the international front, CIRSA expanded its presence in Peru this year by securing a 70% stake in Apuesta Total. This acquisition made CIRSA the leading gambling operator in Peru, adding 500 betting locations and an online sportsbook to its existing assets of 19 casinos and 3,200 slot machines.