Eldorado Resorts entered into a definitive agreement to buy the casino for US$327.5 million.
US.- MGM Resorts International, along with its venture partner RBG, announced on Monday the execution of a definitive agreement to sell the Grand Victoria Casino in Elgin, Illinois. Eldorado Resorts will pay US$327.5 million for the casino.
MGM Resorts will receive its 50 per cent share of the net proceeds after certain transaction costs, or approximately $162 million. The transaction is expected to close within 12 months, subject to regulatory approvals and other customary closing conditions.
The transaction follows Eldorado’s attempt to expand its business in the Chicago-area market. Gary Carano, chairman and chief executive office of Eldorado, said on a conference call on Monday that Grand Victoria is one of the leading casinos in the Chicagoland market and is extremely well-maintained,” therefore it will allow them “upon closing, to focus on enhancing the guest experience and operating results without the need to undertake capital investments.”
Eldorado also acquired part of Tropicana Entertainment, as it entered into an agreement with Icahn Enterprises. “Following the completion of these transactions, Eldorado has grown from a company that just four years ago was comprised of two wholly-owned properties and a 50 per cent joint ownership interest… (in) a third property in just two states to a company now that owns 26 gaming properties in 13 states,” said Carano.