Codere, the second-largest gambling company in Spain after Cirsa, is up for sale at a valuation of around €2 billion ($2.3 billion).
The company has hired US firm Jefferies and Australia-based Macquarie Capital as financial advisors to prepare the sale process, according to a report from Spanish news outlet Expansión.
Sale To Complete In Summer
The process is still in the early stages, with a tentative mid-May deadline for interested parties to submit their non-binding offers. Binding offers would likely be submitted around July, with a purchase agreement finalized in August.
Founded by the Martínez Sampedro family in 1980, the company has undergone several restructurings in recent years. The company’s current shareholding is now divided among approximately 84 investment funds, with Davidson Kempner holding a 13.3% stake, followed by Palmerston Capital (5.6%), Deltroit (5.47%), System 2 Capital (5.15%), and Invesco (5.14%).
Company in Good Financial Health
An agreement with creditors in 2024 converted approximately €1.2 billion of debt into equity. Gonzaga Higuero, CEO of the company, said the deal was “a decisive success for Codere, a guarantee for the future that secures our financial position and relaunches the company’s ability to achieve the growth objectives set.”
In 2024, the group recorded revenues of €1.346 billion ($1.56 billion), with an adjusted EBITDA of €179 million ($207 million).
The company operates in seven countries: Spain, Italy, Argentina, Mexico, Panama, Colombia, and Uruguay, with both physical gambling sites and online platforms. Its business includes slot machines, bingo halls, sports betting terminals, arcades, gaming rooms, bars, and racetracks.
Its online arm is listed separately on the Nasdaq, but that would also be included in the sale. It made up 12% of total revenue in 2024.
Spain No Longer Highest Revenue Stream
While the company was founded in Spain, the country’s tough stance on gambling has led to reduced revenue in the country. Codere was one of several companies fined by Spain’s regulator last year amid a crackdown on gambling. The company was fined €17,500 for using unapproved technical systems.
Italy and Mexico accounted for 21% and 17% of the company’s revenue in 2024, respectively. Spain, meanwhile, generated around 16%.
Gambling companies in Spain must follow stricter regulations, including displaying strongly worded warning messages akin to tobacco. The country introduced the measures last year.
The new messages include:
- Gambling addiction is a risk of gambling
- The probability of being a losing gambler is 75%
- Losses for all gamblers are four times greater than their winnings
Minister for Social Rights Pablo Bustinduy has led the reforms, stating that “the responsibility should not fall on users but on the authorities, who have the democratic duty to ensure that the environments they access are safe.”
It is unclear if Spain’s stricter regulations on gambling companies will impact the potential sale of Codere.
The post Spanish Gaming Giant Codere Up for Sale at €2 Billion appeared first on CasinoBeats.
Codere, the second-largest gambling company in Spain after Cirsa, is up for sale at a valuation of around €2 billion ($2.3 billion). The company has hired US firm Jefferies and Australia-based Macquarie Capital as financial advisors to prepare the sale process, according to a report from Spanish news outlet Expansión. Sale To Complete In Summer
The post Spanish Gaming Giant Codere Up for Sale at €2 Billion appeared first on CasinoBeats.