Formentor to invest €40 million this year in acquiring 1,100 slot machines

The Spanish venture capital firm Formentor Capital is driving a consolidation project in the sector of type-B amusement machines —commonly known as slot machines— in the hospitality industry, through which it plans to invest around €40 million in 2026.

Formentor channels the investment through Barianza, a company it owns that already operates 1,100 slot machines, making it the fifth largest operator in the sector in Spain, just behind Cirsa, Codere, Orenes and Luckia.

Unlike other operators, Barianza introduces a technology layer into its machines that allows both the company and its clients to monitor revenue in real time, improving the company's efficiency and bringing greater transparency to the business.

Barianza, led by Jacobo López Zafra —former Chief Operating Officer at Codere—, recorded €24 million in revenue last year, with approximately €7 million in EBITDA. The objective is to double the company's size by 2026 —in revenue, EBITDA and number of terminals— with the aforementioned €40 million investment, of which €12 million are provided by Santander through a credit facility.

Formentor executes the project through Recurring Entertainment and Probability Invest, the two venture capital vehicles that control Barianza's capital. These two vehicles have already secured commitments of €55 million, of which €35 million have already been invested in the project.

The maximum target size of both funds stands at €150 million, resources with which Formentor aims to reach 4,000 amusement machines by 2028.

Among Formentor's current investors in the Barianza project, Grup Peralada stands out, the business group of the Suqué family, which committed €15 million to the aforementioned vehicles.

Formentor promises investors in its vehicles returns (IRR) above 30% per annum and more than three times the invested capital in the project, according to sources familiar with the matter.

Fuente - Expansión