Gaming and hospitality firm Golden Entertainment has announced the completion of the previously disclosed sale of its distributed gaming operations in Nevada to an affiliate of Illinois-based private firm J&J Ventures Gaming.
As per the deal agreement, J&J Gaming acquired the business for cash consideration of approximately $213.5 million, subject to customary working capital and other adjustments. It will also purchase cash (comprised of cash and cash equivalents related to such operations at the time of closing) of approximately $37.5 million.
Latham & Watkins LLP acted as a legal counsel to Golden Entertainment for this transaction.
In September, Golden Entertainment sold its distributed gaming operations in Montana to J&J Gaming for approximately $109 million.
Golden Entertainment owns and operates a diversified entertainment platform, consisting of a portfolio of gaming and hospitality assets that focus on casino and branded tavern operations. It operates nearly 5,600 slots, over 100 table games, and over 6,000 hotel rooms besides owning eight casinos and 69 gaming taverns in Nevada.
In March last year, the company entered into definitive agreements to sell its slot machine business in the two states to J&J Gaming for a total cash consideration of $322.5 million, plus $39 million of estimated purchased cash at closing. As per earlier reports, Golden will enter into a five-year agreement with J&J Gaming to support the gaming operations of its branded tavern locations in Nevada “at financial terms consistent with the company’s past practice.”
Today, J&J Ventures is one of the largest terminal operators in Illinois, Pennsylvania, and Montana with plans to operate in Nevada. As per earlier reports, the Golden Entertainment deals make J&J Ventures, majority-owned by funds managed by Oaktree Capital Management, one of the main terminal operators in Montana.
In August 2022, Golden Entertainment reached an agreement to divest the land and structures of its Rocky Gap Casino Resort situated in Maryland to Vici Properties for a sum of $203.9 million. The transaction concluded in July 2023. Furthermore, the company successfully transferred the operational assets of the casino to Century Casinos for a consideration of $56.1 million, resulting in an aggregate deal value of $260 million.
These transactions allow Golden Entertainment to concentrate its efforts on its portfolio of eight casinos located in Southern Nevada including The STRAT Hotel, Casino & SkyPod as well as its network of 65 gaming taverns operated under the PT’s, Sierra Gold and other brands across the state of Nevada.
Original article: https://www.yogonet.com/international/noticias/2024/01/11/70360-golden-entertainment-completes-2135-million-sale-of-nevada-gaming-operations-to-jj-ventures
