Codere launches €2bn sale process after debt restructuring

Spanish gaming operator Codere has commenced preparations for its potential sale in a transaction that could activate within the coming weeks, positioning the business valuation at approximately €2 billion.

The company has tasked investment banks Jefferies and Macquarie Capital with designing the sale process, indicating the initiative has entered a preliminary yet structured phase. The timeline targets mid-May for receiving non-binding offers from potentially interested companies, while firm proposals are expected in early July, with the aim of closing the transaction before the August summer break.

Post-Restructuring Foundation

The sale follows completion of a comprehensive financial restructuring process. In 2024, Codere reached an agreement with creditors on recapitalisation that involved capitalising approximately €1.2 billion of debt and substantially reducing liabilities from levels near €1.4 billion to around €190 million, whilst incorporating fresh liquidity.

This restructuring has stabilised the balance sheet after more than a decade of adjustments, leaving capital in the hands of approximately 84 investment funds. Davidson Kempner leads with a 13.3% stake, followed by Palmerston Capital, Deltroit, System 2 Capital, and Invesco.

Operational Performance

From an operational perspective, the company has demonstrated stable evolution in recent years. Codere registered revenues of €1.346 billion in 2024 and adjusted EBITDA of €179 million, with current estimates positioning this metric above €200 million.

Digital Asset Inclusion

A key element of the operation is the possible inclusion of digital subsidiary Codere Online, which has traded on Nasdaq since 2021. Despite experiencing a declining phase, the platform has resumed growth trajectory with year-on-year revenue increases. This division represents a relevant portion of both turnover and profitability, reinforcing the overall package's attractiveness to potential buyers.

Buyer Interest Spectrum

The range of interested parties could include both industrial operators and financial investors. Market analysts point to groups such as Allwyn International or Flutter Entertainment as possible candidates, though the operation could also remain within private equity territory. However, some experts consider the initial valuation may prove excessive for certain investors.

Strategic Implications for Gaming M&A

This sale process signals renewed confidence in European gaming assets following successful debt restructuring. The €2 billion valuation reflects the premium market participants place on established omnichannel operations with digital growth components. For other heavily leveraged gaming operators, Codere's restructuring blueprint demonstrates viable pathways to financial stability and eventual exit opportunities. The inclusion of Codere Online adds complexity but potentially enhances value, particularly as public gaming companies seek exposure to regulated digital markets across Latin America and Europe.

According to AzarPlus.