15/07/2005 Ladbrokes acquires Jack brown Ltd

15 July, London - Ladbrokes, the betting and gaming division of Hilton Group plc, has today acquired Jack Brown (Bookmaker) Limited, the Welsh betting shop company with 141 shops. The private sale is for a consideration of £76 million, payable to various vendors.

The purchase of Jack Brown Ltd. by Ladbrokes increases its shop numbers in Wales from 29 to 156. The remaining 14 shops Ladbrokes is acquiring are located in the Birmingham area.

Over the next six months the Jack Brown shops will be rebranded as Ladbrokes, equipped with Ladbrokes industry-leading technology, comprising EPOS1, advanced broadcast systems and Ladbrokes Xtra, a new dedicated channel offering additional betting opportunities on international horseracing and sport. The existing FOBT offering will also be expanded with the introduction of Ladbrokes Cashquest FOBTs. Full refurbishment will take place over the next 18 months with a capital investment programme of £12 million.

Ladbrokes expects the estate to contribute an EBITDA of £4 million in the second half of 2005.

As part of the integration process Ladbrokes will ultimately close the head office of Jack Brown in Pontypridd.

Commenting on the deal Chris Bell, Chief Executive of Ladbrokes Worldwide said: "We are delighted to have acquired this well established and well run estate of shops in Wales. We know it has a great and promising future."

Commenting on behalf of Jack Brown Limited, Gary Brown Managing Director said: "The betting business has been run by our family for over 78 years, so it was important that we found the right partner for our sale. We know that Ladbrokes will ensure the business has a bright future."

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EPOS Electronic Point of Sale is Ladbrokes advanced bet capture and settling system which also enables distribution of advanced broadcasts and information screens into betting shops.

Notes to editors

The acquisition takes the number of Ladbrokes shops worldwide to 2,567, comprised of 2,260 in the UK, Channel Islands and Republic of Ireland and 307 shops in Belgium. In addition Ladbrokes now has betting facilities at 61 sporting venues throughout the UK with the Millennium Stadium being added to 18 of the 20 FA Premier League stadia and 13 leading Scottish stadia including Hampden Park and Murrayfield. Ladbrokes also operates further facilities at racecourses and cricket grounds.

Ladbrokes, the world's largest bookmaker, will now trade in 2,567 outlets in Europe, comprising: