Kicks Entertainment LLC, a newly created entity that is owned by Laguna Development Corporation and Eagle Holdings, will take over Isle of Capri Casinos Inc. Isle of Capri Casino Hotel Lake Charles. The acquisition deal includes the riverboat casino as well as the 493-room hotel and the rest of the amenities such as the food and beverage outlets.
According to information provided by Isle of Capri Casinos, the deal is worth around $134.5 million. Company’s representative, Eric Hausler who is the chief executive officer, said that the agreement was giving Isle of Capri Casinos a chance “to unlock significant value” for the shareholders. Hausler also revealed expectations for the transaction to boost Adjusted EBITDA margins as well as to deleverage the company’s balance sheet. According to him, the cash proceeds from the deal would be used for various corporate purposes and to reduce debt.
Hausler didn’t fail to mention that the company enjoyed “owning and operating” Isle of Capri Casino Hotel Lake Charles for over 20 years and thanked everyone for their hard work and dedication. He also announced that the focus of the company, while working on a transition to Kicks Entertainment, would be to provide customers with a great experience during their stay at the establishment.
On the other hand, Jerry Smith, President and CEO of LDC, highlighted that the acquisition was culmination of a “two-year business development effort to expand LDC both within and outside New Mexico.” Smith said that Lake Charles was the largest casino market in Louisiana and expressed expectations for the company to continue generating “solid financial results” for both owners and investors.
The sale of Isle of Capri Casino Hotel is expected to complete in late 2017/early 2018, something that depends on the approval of the Louisiana Gaming Control Board and on customary closing conditions.