American private equity management firm, Z Capital Partners, has announced that it has offered to spend approximately $132.5 million in order to acquire Full House Resorts Incorporated before combining the regional gaming firm with its own larger casino-operating, Affinity Gaming, vehicle.
Deal would create an ‘industry-leading platform’:
A subsidiary of New York City-based, Z Capital Group, Z Capital Partners used an official Monday press release published by European Gaming Media and Events to declare that the proposed cash and stock transaction would create an ‘industry-leading platform’ that offered a ‘best-in-class portfolio of resorts and casinos.’
Envisioned union all about ‘value creation’:
James Zenni, Chief Executive Officer for Z Capital (pictured), stated that merging Full House Resorts Incorporated’s ‘custom-designed regional gaming properties’ with the portfolio of Affinity Gaming would allow his firm to shape ‘a best-in-class platform for value creation in this consolidating market.’
Zenni’s statement read…
“Our proposal represents a unique and compelling opportunity to maximize value for stockholders and stakeholders in both companies. With an experienced and dedicated management team, Affinity Gaming would bring significant operational capabilities and expertise that we believe would further propel the combined company’s growth and unlock unrealized potential for Full House Resorts Incorporated stockholders.”
Anthony Rodio would lead combined entity:
Z Capital moreover explained that the proposed combined casino entity would remain headquartered in Las Vegas and be led by the recently-appointed Chief Executive Officer for Affinity Gaming, Anthony ‘Tony’ Rodio.
Zenni’s statement read…
“We look forward to a constructive dialogue with Full House Resorts Incorporated’s board of directors as they carry out their fiduciary duties on behalf of the company’s stockholders.”
Full House Resorts Inc operates five casinos in four states including southern Mississippi‘s Silver Slipper Casino Hotel and the recently recorded an almost 13% drop year-on-year in second-quarter unaudited gross revenues to $41.22 million although its net loss for the three-month period improved by around 56% to stand at $661,000.
Designs on expansion:
For its part, Affinity Gaming is responsible for eleven casinos in four states including the 777-room Whiskey Pete’s Hotel and Casino near Las Vegas as well as Colorado’s Golden Gates Casino, Golden Gulch Casino and Golden Mardi Gras Casino. It was acquired by Z Capital via a $580 million deal in February of 2017 with the aim of expanding into further markets and progressing profitability through a series of enhanced efficiencies and operating improvements.