US-based operator Isle of Capri Casinos has entered into an agreement with the Rank Group to sell the company's casino at the Ricoh arena in Coventry, UK.
The total price for the acquisition by Rank is £650,000. In conjunction with the transaction, the company also executed a buy-out of its obligations under the Coventry casino lease for £7.7m. Rank is to re-launch the casino under its G brand after an investment of £1m.
“We have taken a significant step forward in our plans to focus on US operations by arranging for a discounted buy-out of the Coventry casino lease and sale of the Coventry casino operations to Rank,” said Don Mitchell, senior vice president of UK operations. “We are very pleased with the outcome of this transaction as the deal enables us to strategically exit the UK on good terms from all ongoing financial obligations, including our lease with the Ricoh arena. Additionally, the property will continue to operate under the management of one of the top UK gaming companies, so we do not expect the impact of a closure to be felt by employees or patrons.”
Phil Urban, managing director of Grosvenor Casinos, said: “In recent years we have successfully broadened the appeal of our business through the development of the G Casino brand, offering customers a grown-up leisure experience based on entertainment, gaming, fun and hospitality.
“I am excited at the prospect of bringing G casino to Coventry as part of the superb Ricoh Arena.”
