Golden Entertainment to Acquire Two Casino Resorts in Nevada for More Than $168M
LAUGHLIN, NEV. — Golden Entertainment Inc. (NASDAQ: GDEN), an owner-operator of casino resorts, has agreed to acquire two properties in Nevada for more than $168 million.
Golden will acquire Edgewater Hotel & Casino Resort and Colorado Belle Hotel & Casino Resort, both of which are located about 100 miles south of Las Vegas in Laughlin. The seller is Marnell Gaming LLC, which is also based in Nevada. The deal is expected to close during the first quarter of 2019.
Combined, Edgewater Hotel & Casino Resort and Colorado Belle Hotel & Casino Resort feature more than 1,400 slot machines, 40 table games and 2,150 hotel rooms. The casino resorts also offer 11 restaurants and dedicated entertainment venues, including the 12,000-seat Laughlin Event Center.
The properties are situated adjacent to Aquarius Casino Resort, an asset owned by Golden Entertainment that features 1,200 slot machines, 30-plus game tables and roughly 2,000 hotel rooms.
“Over the past several years, Marnell Gaming has taken their expertise and created a significant hotel, casino and entertainment presence in Laughlin,” says Blake Sartini, chairman and CEO of Golden Entertainment. “We are excited to solidify our presence in this growing and attractive game market.”
The exact sales price has yet to be determined, as it will be calculated based on the trailing 12-month adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) at the time the transaction closes. The properties will carry a combined price between $168 million and $190 million.
The sale will consist of $155 million in cash with the remainder being paid in restricted stock issued at a price of $28.54 per share. Golden will finance the acquisition with cash on hand and through its credit facility.
Golden’s stock price closed at $29.35 per share on Friday, July 13, up from $20.58 per share a year ago. With this acquisition, the company will own nine casino resorts in Nevada and one in Maryland.
— Taylor Williams