Goals Soccer Centres boss to net £6m after Canadian offer wins backing

By PETER RANSCOMBE
Published on 20/07/2012 19:52

GOALS Soccer Centres boss Keith Rogers stands to pocket a £6 million windfall after directors at the East Kilbride-based five-a-side football pitch operator yesterday backed a £73.1m takeover bid.

The Ontario Teachers’ Pension Fund (OTPP), which owns National Lottery-operator Camelot, offered 144p a share, a 34 per cent premium to the closing price on the night before rumours of a potential bid emerged in March.

Rogers’ 8.4 per cent stake in Goals will trigger a bumper pay-out, while his fellow directors will share a further £2.7m.

Jo Taylor, vice-president at Teachers Private Capital, the private equity arm of OTPP, said the management team would be reinvesting some of its windfall into the business.

Taylor remained tight-lipped over what size of stake the directors would take in the company, but said it would be enough of an incentive to continue pushing the business’s performance.

OTPP plans to invest £40m in Goals over the next five years to fuel its expansion plans, adding 25 sites. Goals already has 43 centres in Britain and a single site in Los Angeles, with OTPP’s bid predicated on expanding the company overseas.

Rogers said: “The Goals management team is excited about partnering with OTPP. This investment will represent a significant step in the implementation of management’s strategy to expand our scale, geography and capability.”

Mervyn Metcalf, managing director of Dean Street, which advised OTPP on the deal, told The Scotsman: “Teachers is writing Keith and his team a big cheque to deliver on their vision. That’s a big vote of confidence and I think it’s the right thing for the company.”

Earlier this month, Patron Capital – which owns smaller Paisley-based peer Powerleague – revealed that it was pondering a rival bid. Patron yesterday said it was “still considering its options” and urged Goals shareholders not to take any action yet.

Analysts said the chance of a rival bidder emerging was receding.

Paul Hickman, an analyst at Peel Hunt, shifted his recommendation on the stock from “buy” to “hold”.

He said: “After months of talks, our sense is that other players are unlikely to challenge this offer.”

Rogers and his team took over Goals in 2000 through a £19m management buy-in backed by Edinburgh-based private equity firm Dunedin. They grew the business from five sites to 12 before floating the firm on the Alternative Investment Market (Aim) in 2004.

Rogers’ previous football business, Pitz, was sold to venture capital giant 3i in 1999 for £28m. Pitz – which had been backed by Bank of Scotland and brewer Scottish & Newcastle – eventually evolved into Powerleague.

OTPP said it already has £4 billion-worth of investments in the UK, including stakes in Birmingham and Bristol airports and the High Speed 1 rail route.

The Canadian pension fund needs 75 per cent backing for the deal to be completed and already has about 27 per cent support thanks to management and institutional investors Aviva, Henderson and the Universities’ Superannuation Scheme.

Shares in Goals closed up 10 per cent or 13.5p last night at 148.5p, valuing the company at about £72m.