BOOKMAKER PADDY Power has taken a €24 million bet on the Belfast market with the acquisition of eight shops in the city.
The firm yesterday announced it has bought McGranaghan Racing for £19 million (€23.8 million) in its first step north of the Border. The chain has eight shops - three in central Belfast, three in west Belfast and two in the suburbs, Hollywood and Glengormley. The purchase means Paddy Power now has a total of 191 outlets in Ireland and 58 in London. It is also looking for expansion opportunities in Glasgow and Manchester.
The main beneficiaries of the deal will be four McGranaghan brothers. They inherited the business from their father, who established it in 1952. The company employs 50 staff and Paddy Power said yesterday that it will be keeping all of them on.
This is the second time this year that a major bookmaking chain has bought a smaller player in the region. Ladbrokes acquired Barney Eastwood's chain in February in a deal valuing the 54-outlet business at €180 million, or €3.3 million a shop.
Paddy Power is paying just under €3 million per outlet for McGranaghan's. When the company published results last February, chief executive Patrick Kennedy said it had "looked" at the Eastwood business.
Existing betting shops in the North are at a premium as, unlike in the Republic, the authorities are not willing to issue new licences. This means anyone seeking a foothold in the market has to buy businesses that are already trading.
Mr Kennedy said yesterday that Paddy Power already had customers in the region through its phone and online businesses, and added that the McGranaghan deal would complement this.
"We'll be investing a significant seven-figure sum refitting the Belfast estate with all shops trading under the Paddy Power brand name by July," he said.
"McGranaghan's has a similar business model to our own, employing a very competitive offering to drive very high shop turnover and profitability.
"The estate has an attractive mix of different locations and, like Paddy Power, is a punter-focused business which promotes a very competitive and attractive offering that will drive both footfall in our shops and increased profitability throughout our company," Mr Kennedy predicted.
