Last Monday, Golden Entertainment announced that it will buy American Casino & Entertainment Properties for US$850 million.
US.- Golden Entertainment Inc. announced last Monday that it will buy American Casino & Entertainment Properties LLC for US$850 million. The corporation will pay US$781 million in cash and will transfer four million Golden Entertainment Shares to private-equity fund Whitehall Street Real Estate Partners 2007, American Casino’s current owner.
Golden Entertainment would acquire the three properties that American Casino operates in Las Vegas, as well as the one it controls in Laughlin, Nevada. The deal will see Golden Entertainment, with its revenue on the rise in the first period of 2017, to take over the company before the end of this year.
Projections put American generating nearly US$413 million of net revenues and US$103 million of EBITDA in 2017, and its future buyer expects to achieve approximately US$18 million of annual run-rate synergies post-closing.
Golden’s Chief Financial Officer Charles Protell said: “This transaction significantly increases the size of our operations and allows us to access the capital markets more efficiently while enhancing our ability to further expand our leading presence in distributed gaming.”
Morgan Securities LLC, Credit Suisse, Macquarie Capital and Morgan Stanley & Co. LLC are providing financial advice to Golden. Goldman Sachs is doing likewise for American Casino, with Sullivan & Cromwell LLP providing legal counsel.