MGM Resorts completes Empire City Casino acquisition
The company has welcomed new 1,2000 employees after finishing the acquisition of the Yonkers casino.
US.- MGM Resorts International and MGM Growth Properties (MGP) have announced that they have completed the transactions for the acquisition of Empire City Casino in Yonkers, New York, for US$850 million approximately.
Following MGM Resorts’ acquisition of Empire City, MGP acquired the developed real property from MGM Resorts for approximately US$625 million and leased it back to a subsidiary of MGM Resorts that will operate the property, announced the company in a statement to the press.
MGM Resorts’ funded the acquisition with approximately US$360 million of cash on hand, the issuance of approximately 9.4 million shares of common stock, based on a volume-weighted average price of a share of the Company’s common stock for a ten-trading-day period prior to the closing date, and the assumption of approximately US$246 million in indebtedness. MGM Resorts has also agreed to pay an additional US$50 million if Empire City is awarded a license for live table games on or prior to December 31, 2022 and MGM Resorts accepts such licence by December 31, 2024.
“We are pleased to welcome the 1,200 employees at Empire City Casino to the MGM Resorts family,” said Jim Murren, Chairman and CEO of MGM Resorts. “Over the past three years, we have established a meaningful presence in the northeast with Borgata in Atlantic City, MGM National Harbor in Maryland, and MGM Springfield in Western Massachusetts. With this new addition to the MGM Resorts portfolio, we have now gained a foothold in the high-density New York City region and we look forward to leveraging the MGM platform to maximize value in this evolving marketplace.”
“What’s incredibly exciting is the amount of opportunity MGM Resorts will bring to the employees at Empire City, as well as Westchester County, the city of Yonkers, and the State of New York,” said Timothy J. Rooney, President and CEO of Empire City Casino. “With destinations throughout the world, from resorts to casinos to entertainment, MGM has a tried-and-true formula for success. They know how to build and grow properties that continually raise the bar in entertainment, travel, and leisure, and we are so thrilled to leave Empire City in MGM’s capable hands. What’s more, the potential for growth at Empire City has absolutely no boundaries. MGM will truly provide Empire City employees and the property’s guests with the resources and opportunities to make the casino and track into something we haven’t even yet realized. I cannot wait to see what’s to come!”
