Recently, La Française des Jeux (FDJ), the operator of the French National Lottery, revealed that it has officially concluded a deal to purchase the whole share capital of Premier Lotteries Ireland (PLI) for 350 million euros. In addition, this acquisition means that Ireland won’t be included in running the National Lottery for the first time ever.
Share purchase agreement:
Under the terms of the agreement, the Irish National Lottery will continue to be managed by PLI and the owners will be the Irish State as it is now, until 2034. In addition, according to the agreement, the French company, which operates La Française des Jeux, purchased shares in PLI.
Commenting on the acquisition, Stéphane Pallez, President and CEO of FDJ Group, said: “I am very pleased to welcome Premier Lotteries Ireland, a long-lasting partner of the Euromillions community, within the FDJ Group for our first venture as lottery operator outside France. This transaction is perfectly aligned with our international development strategy and our historical core business. It will enable FDJ to continue to grow while remaining true to its recreational, responsible and redistributive gaming model. We are looking forward to working together, taking the most of all collaboration opportunities.” Premier Lotteries Ireland’s CEO Andrew Algeo added: “FDJ’s backing marks the beginning of an exciting new chapter in PLI’s history, which will benefit Ireland’s National Lottery and its many stakeholders. I am grateful to both OTPP and An Post who have been generous supporters of PLI, and the National Lottery has grown substantially and sustainably on their watch. The PLI team looks forward to creating an even better Irish National Lottery with FDJ and contributing to FDJ’s international lottery expansion.”
Furthermore, PLI shareholders Ontario Teachers’ Pension Plan, An Post Pension Fund and An Post have concurred to sell their shares. In this regard, An Post CEO and National Lottery Director David McRedmond said: “The deal was a positive outcome for Ireland and for the National Lottery. FDJ industry expertise will be hugely beneficial to the future operation, and strengthens Ireland’s ties to its nearest EU neighbour.”
Purchase that will boost the economic growth of FDJ:
According to the Irish National Lottery’s yearly report, PLI “made sales of €1.05 billion in 2021, its most successful year to date. Of that, €304 million was distributed to what it calls “good causes”, while €586 million was paid out in prizes.” However, the government has wanted to sell National Lottery since 2012, when the state was only a year into its aid program. On that note, Vivienne Jupp, Chair of PLI, said: “My company has moved from strength to strength since winning the licence for the Irish National Lottery. It had delivered for good causes and the community and looks forward to the next chapter of growth, where we will be able to share best practices with FDJ.”
As FDJ also has published its revenue for the first half of 2023, there it was also reported that during 2022 PLI has reported a GGR of €399 million and a profit of €140 million, with an EBITDA margin at the same level as the FDJ Group, which means an extra participation in the growth of the Group of over 5% throughout the entire year. In addition, this data means that acquisition of PLI is a good strategic move by FDJ, as it will help the company to further drive its economic growth.