American casino operator Eldorado Resorts Incorporated has signed a definitive merger agreement that will see it acquire rival Isle Of Capri Casinos Incorporated for a total consideration of approximately $1.7 billion subject to shareholder approvals.

Eldorado Resorts Incorporated operates the Eldorado Resort Casino, the Silver Legacy Resort Casino and the Circus Circus Resort Casino in Reno, Nevada, as well as the Eldorado Resort Casino in Shreveport, Louisiana, the Scioto Downs Racino in Columbus, Ohio, the Mountaineer Casino Racetrack And Resort in Chester, West Virginia and the Presque Isle Downs And Casino in Erie, Pennsylvania, and revealed that the purchase price is set to include $929 million of long-term debt held by Isle Of Capri Casino Incorporated and its subsidiaries.

“The acquisition of Isle Of Capri [Casinos Incorporated] represents a transformational growth opportunity for Eldorado [Resorts Incorporated] and is a significant milestone in the successful ongoing execution of our long-term strategy to opportunistically expand our regional gaming platform through accretive acquisitions,” said Gary Carano, Chairman and Chief Executive Officer of Eldorado Resorts Incorporated.

Carano stated that Eldorado Resorts Incorporated has experienced “tremendous” growth since 2014 when it owned only two properties alongside a 50% stake in a third venue with the proposed deal due to give it an estate of 20 casinos spread across ten states.

“Financially, the transaction is expected to be accretive to our operating results upon closing,” said Carano. “For the twelve-month periods ended the last day of the most recent fiscal quarter for each of Eldorado Resorts [Incorporated] and Isle [Of Capri Casinos Incorporated], the revenues of the combined company were almost double Eldorado [Resorts Incorporated’s] revenues on a standalone basis and combined adjusted earnings before Interest, tax, depreciation and amortization was approximately $400 million inclusive of the cost synergies we have identified. Strategically, the combination builds the scale of our gaming operations and further diversifies the geographic reach of our operations without any overlap with our existing properties.”

For its part, Isle Of Capri Casinos Incorporated operates 14 casino properties in Colorado, Florida, Iowa, Louisiana, Mississippi, Missouri and Pennsylvania and last month announced that it had inked a deal to offload its Isle Of Capri Casino Hotel Lake Charles to Albuquerque-based Laguna Development Corporation for $134.5 million.

“We are pleased to reach this agreement with Eldorado Resorts [Incorporated], which provides Isle Of Capri [Casinos Incorporated] shareholders with substantial and immediate value as well as the opportunity to participate in the upside potential of the combined company,” said Eric Hausler, Chief Executive Officer for St Louis-based Isle Of Capri Casino Incorporated. “The premium value our shareholders will be receiving reflects the culmination of several years of hard work by many dedicated Isle Of Capri [Casinos Incorporated] employees and the determination and guidance of our board of directors in creating and driving value. I am thankful for the hard work and dedication of our talented employees and I am confident they will continue to make many valuable contributions as part of a larger and stronger organization. I look forward to working closely with the Eldorado [Resorts Incorporated] team to bring our companies together to realize the benefits of this compelling combination and ensure a smooth transition.”

Eldorado Resorts Incorporated explained that the deal is expected to close during the second quarter of 2017 and will give it an estate of approximately 20,800 slots and more than 560 table games alongside over 6,500 hotel rooms.

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