Asset management specialist Z Capital Group has reportedly agreed a deal that will see its Z Capital Partners private equity arm spend $580 million in order to purchase the remaining shares in American casino operator Affinity Gaming.
According to a report from the Las Vegas Review-Journal newspaper, Las Vegas-based Affinity Gaming owns eleven casinos throughout the United States encompassing five properties in Nevada alongside three in Colorado, two in Missouri and one in Iowa.
The newspaper reported that the agreement will see Z Capital Partners and its affiliates, which already own around 41% of the outstanding shares in Affinity Gaming, acquire the remaining stocks for an individual price set at $17.35.
Affinity Gaming, which was known as Herbst Gaming Incorporated until being restructured in 2011, revealed the all-cash deal on Tuesday and stated that it is expected to close the transaction during the first quarter of next year pending the receipt of shareholder and regulatory approvals. In the Las Vegas area, the operator runs the 370-room Silver Sevens Hotel And Casino, which was formerly known as Terrible’s Hotel And Casino, alongside the 777-room Whiskey Pete’s Hotel And Casino, the 624-room Primm Valley Resort And Casino and its largest, the 61,372 sq ft and 1,242-room Buffalo Bill’s Resort And Casino. Elsewhere, it operates the Rail City Casino in Sparks, Nevada, while moreover being responsible for the Golden Gates Casino, Golden Gulch Casino and Golden Mardi Gras Casino in the Colorado town of Blackhawk.
Established in 1987 as a slot services firm before opening its first casino a decade later, Affinity Gaming additionally now operates the Lakeside Hotel And Casino in Osceola, Iowa, as well as Missouri’s St Jo Frontier Casino and Mark Twain Casino.
“We are pleased to enter into the agreement to purchase Affinity Gaming and transition from the largest shareholder to sole controlling shareholder,” read a statement from James Zenni, President and Chief Executive Officer for Z Capital Partners and a member of Affinity Gaming’s board of directors since 2014. “Affinity Gaming brings a compelling offer to consumers by providing high-quality entertainment at affordable prices in attractive markets and I am confident that Z Capital Partners is uniquely positioned to grow the business for years to come. We look forward to leveraging our broad expertise across the hospitality, restaurant, retail and consumer sectors to help Affinity Gaming continue to expand while driving profitability through operating improvements and enhanced efficiencies.”