Golden Ent acquires two Nevada casinos

The company is set to purchase the Edgewater Hotel & Casino Resort and the Colorado Belle Hotel & Casino Resort.

US.- Golden Entertainment has announced on Monday a new definitive agreement with Marnell Gaming LLC, that will see the company acquiring the Edgewater Hotel & Casino Resort and the Colorado Belle Hotel & Casino Resort in Laughlin, Nevada. The transaction is expected to close in the first quarter of 2019, subject to customary closing conditions and the receipt of all required regulatory approvals.

The agreement establishes that the purchase price will be used on an 8.0x multiple of the combined trailing twelve months adjusted EBITDA of both properties as of November 2018, with a minimum price of US$168 million and a maximum price of US$190 million. Including expected cost synergies and cash acquired, the purchase price is expected to represent an implied trailing twelve months adjusted EBITDA multiple of 6.5x. The purchase consideration will consist of US$155 million of cash and the balance in restricted stock issued at a price of US$28.54 per share.

Blake Sartini, Chairman and Chief Executive Officer of Golden, said that the acquisition provides the company with an opportunity to expand its portfolio to nine wholly-owned casino resorts in Southern Nevada, and it solidifies the presence in the growing market. “The transaction is consistent with our strategy to grow our business in an accretive manner for shareholders and Golden is uniquely positioned to benefit immediately from cost synergies related to the acquisition of these properties.”