Livingstone Düsseldorf’s Consumer sector team has advised the shareholders of German Tote Service-und Beteiligungs GmbH (‘German Tote’) on a sale of a majority stake to French Pari-Mutuel Urbain (‘PMU’).
German Tote, a technical service provider for betting shops and a marketer for horse racing, was a 100% subsidiary of BGG Betriebsgesellschaft der Galopp Rennvereine mbH (‘BGG’). Since the takeover of German Tote, founded in 2002, by BGG in 2005, the company has become market leader for tote betting in Germany. In addition to its own operated betting shops, German Tote has 70 betting shops operated under licence, operates an online betting service, and markets the live TV broadcasts of German horse-racing clubs (gallop and trot) to national and international sales partners.
PMU was established in 1930 in France and is the leading operator of tote betting and provider of betting services in Europe, working in 44 countries. PMU has been working with German Tote for 12 years, enabling German clients to bet on French races. In 2014 revenue from bets mediated by German Tote into the French pools was €172m.
Denis Hartenstein, Chairman of BGG, says: “The investment in German Tote is a milestone for German horse racing and betting. We are excited to enter into a strategic, financial and political partnership with PMU.”
Xavier Hürstel, General Manager of PMU added: “I am very pleased about this partnership with German Tote, it enables us to increase the popularity of horse racing, combined with offering our betting services to a wider audience.”
Ralph Hagelgans, Partner at Livingstone in Düsseldorf commented: “We are delighted to have advised the shareholders of German Tote on this transaction. The partnership formalises an already strong relationship between the two companies, something which will bring great benefits to the sport in Germany in terms of enhanced media coverage of international racing events.”
Riko Luiking, Managing Director of German Tote, concludes: “Livingstone was the perfect partner for us. This was a complex cross-border transaction due to the regulatory requirements of the deal. The team’s knowledge and experience of the sector, and understanding of all aspects of cross-border regulatory requirements achieved the best possible result for us.”