Gateway Casinos & Entertainment, one of Canada’s largest gambling firms, is reportedly exploring strategic alternatives for its business, including a potential sale.
Bloomberg reported that the company has been allegedly seeking a valuation of approximately $2 billion, which includes $1.1 billion in debt, as per sources who wished to remain anonymous.
To facilitate this process, Gateway has reportedly engaged the services of investment bank Morgan Stanley and Macquarie Group Ltd. Gateway Casinos & Entertainment operates 31 gaming properties in Canada, primarily located in British Columbia, Ontario, and Alberta.
The company has shown growth over the years, driven by a combination of internal expansion and acquisitions. Among its notable properties is the Grand Villa Casino, located in the Vancouver suburb of Burnaby.
The company is primarily owned by Catalyst Capital Group, a private equity firm that took control of Gateway back in 2010. Gateway Casinos & Entertainment had previously pursued an initial public offering (IPO) and considered a merger with a special purpose acquisition company (SPAC). However, neither of these paths materialized.
As Canada’s largest gaming company, Gateways boasts a portfolio of about 391 table games (with 31 poker tables), 14,288 slot machines, 81 food and beverage establishments, and 564 hotel rooms.
Original article: https://www.yogonet.com/international/news/2023/10/17/69231-gateway-casinos-reportedly-weighing-2b-sale-other-strategic-options
