Nevada-based Golden Entertainment Inc. (NASDAQ:GDEN) announced Monday that it has entered into a definitive agreement to acquire casino holding company American Casino & Entertainment Properties LLC for $850 million, according to Reuters.

The deal between the two Las Vegas-based companies consists of a cash consideration of $781 million in addition to approximately four million shares of Golden stock at $17.05 per share (approx. $68.2 million) issued to American Casino’s parent company Whitehall Street Real Estate Funds.

Currently, Golden Entertainment, the largest tavern operator and slot route operator in Nevada, owns four resort casinos including three in Pahrump, Nevada; the Pahrump Nugget Hotel & Casino, Gold Town Casino, and Lakeside Casino and RV Park; and in Flintstone, Maryland, the Rocky Gap Resort. Upon closing the deal, the gaming company, which was formed in 2015 by the merger of Golden Gaming and Lakes Entertainment, will operate more than 15,800 slot machines, 114 gaming tables, and over 5,100 hotel rooms distributed across eight casino properties, according to Reuters.

American Casino & Entertainment Properties LLC owns three Las Vegas properties including the Aquarius Casino Resort in Laughlin, Arizona Charlie’s Decatur, the Stratosphere Casino, Hotel & Tower, and Arizona Charlie’s Boulder.

In announcing the deal, Golden Entertainment Chairman and CEO Blake L. Sartini said in a statement: “The American properties represent an ideal complement to our existing operations as they strengthen our presence in the Las Vegas locals market while providing us with an iconic destination property on the Las Vegas Strip.

In addition, given the recent investment activity focused on the north end of the Las Vegas Strip, we see future potential to develop the approximately 15 acres of excess real estate surrounding the Stratosphere. This acquisition supports our goals for growth in many ways, including the potential to use our increased free cash flow and financial scale to pursue distributed gaming opportunities in existing or potential new markets.”

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