Private-equity firm CVC Capital Partners said that "it acquired a majority stake in privately held German sports-betting company Tipico Co.," the first deal for the financial investor in Europe’s largest economy since it hired Goldman Sachs Group Inc.’s former Germany Head Alexander Dibelius last June, according to Eyk Henning of the WALL STREET JOURNAL. Financial details of the transaction were not disclosed, "though people familiar with the matter previously said Tipico might fetch a valuation" of between €1B ($1.13B) and €1.5B ($1.7B). CVC already owns "a majority stake in Sky Bet, a U.K. sports-betting agency." Tipico, sponsor of Bayern Munich, is the country’s "largest private sports-betting company," with around €500M ($564M) in net revenue or €2.5B ($2.8B) in processed bets annually -- "nearly half of the domestic market" (WSJ, 4/24). REUTERS' Eckert & Huebner reported CVC said in a statement that "it could not give a purchase price due to confidentiality agreements." It said that the deal "was subject to clearing by the relevant cartel authorities and was expected to be completed in the third quarter of 2016." Sources earlier this month said that buyout group Centerbridge "had joined up with Deutsche Telekom to bid for Tipico" (REUTERS, 4/24).
BHS FAILED SALE: In London, Murad Ahmed reported U.K. retailer BHS has "gone into administration after talks failed to secure a rescue package, leaving about 11,000 jobs at risk." Administrators from Duff & Phelps have been "called in after negotiations with Sports Direct and other potential funders failed on Sunday night." Owner Dominic Chappell said in a letter to staff on Sunday that the directors of the company would call in administrators on Monday morning after being "unable to secure a funder or a trade sale" (FINANCIAL TIMES, 4/25).
