This will serve as the springboard to further acquisitions and organic growth. According to information released by Waterland: “Löwen Play operates around 4,000 machines throughout the country, currently at about 160 arcades, plus a limited number of games machines in restaurants and licensed premises. Since its foundation at the beginning of the 1970s, Löwen Play has grown continually and has developed to become a provider with a dense network of locations. Sector analysts consider its organisation to be one of the best developed on the German market.”

Dr. Kai Lahmann, principal of Waterland in Germany, said: “The range of providers in the German arcade market is still highly fragmented, and will continue to be consolidated in coming years. As the second-largest arcade operator in Germany, Löwen Play has the advantage of an experienced management team. We see a wide range of opportunities for it to expand, both organically and via acquisitions.”

Löwen Play’s management, together with Waterland, have already identified a number of opportunities for growth. The company will also profit from Waterland’s experience in the Netherlands, where it has already acquired the market leader, JvH Gaming. “Waterland’s geographical and sector-related focus makes it possible for us to build on expertise acquired in niche markets and to utilise this in other areas,” said Lahmann.

The acquisition was made via the Waterland Private Equity Fund III B.V., which in April 2006 closed on E400m. The main Löwen office in Bingen employs more than 700 people and achieved sales of about E50m in 2005, according to information from Waterland. The latter is an independent holding company with activities in Germany, the Netherlands and Belgium, with a volume of funds of E625m. Waterland concentrates on consolidation strategies within fragmented growth markets.

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