Kindred Group Expands in Belgium With Blancas NV Purchase
Recent news out of Belgium has shown that Kindred Group is making active moves there. The big story is all about their recent purchase of a company known as Blancas NV. That by itself might not seem like much on its own.
However, the implications of the purchase are what means the most here. A lot can come from this business deal for Kindred Group in Belgium.
Tons of business deals happen in the online gambling industry on a weekly and monthly basis. We cover business deals sometimes that have a big impact on a company or a part of the world. In this case, the purchase of Blancas NV by Kindred Group does both.
The details of why this deal matters so much have a few layers to them. Along these lines, we’re going to break down why players should care about this purchase by looking at each individual layer piece by piece to make it clear just what’s going on and what the implications are of this business deal.
The First Layer: What Blancas NV Does
The first thing to understand about this deal is to understand why Blancas NV is important. They are a casino operator known primarily for running Casino Blankenberge. Since there are only nine brick and mortar casinos in Belgium, owning one of them is a pretty big deal. That’s exactly what Kindred Group gets out of this agreement. Understanding the significance of having that much market share in the country is critical.
The timing of the deal is also really, really important. Blancas NV just recently had their licenses to operate extended. The Belgian Gaming Commission extended their license just in January 2021. This extension is for 15 years, which is obviously a long time in this industry. That’s obviously a really big deal in and of itself. However, the real key is to understand that this is a 15-year foothold that Kindred Group is being given in this country, which is a massive long-term gain.
The Second Layer: Details on the Deal
The deal was executed in cash for 25 million (GBP). No debt is involved, and the entire thing is done and over with and paid for. The significance of this cannot be understated because we so rarely see cash deals in this industry. Tons of debt and contingencies and other parts of a deal are usually tied in to complicate things further.
That’s not what’s happened here, however. Kindred Group has paid outright for Blancas NV. That means that no strings are attached to the rest of what they do with the casino. Along these lines, that puts them in an advantageous spot in terms of the future. This is because they are beholden to no one with Casino Blankenberge other than themselves and the gaming commission.
Kindred Group Making Moves
We really like to see companies like Kindred Group making moves like this. They have a tremendous reputation and have ran some great companies. Their success as an operator has been in the upper tier of the industry. That means that pretty much any property they take on, whether it’s online or land-based, will benefit in the process.
We definitely think that will be the case for Casino Blankenberge. When you look at the long-term strategy involved of picking up such a significant portion of the market, it’s easy to see how they will definitely have a foothold in Belgium for a long time. At least 15 years is guaranteed at this point, but if history is any indication, it’ll be a lot longer.