Golden Entertainment announced Thursday that it has entered into definitive agreements to sell its Rocky Gap Casino resort in Maryland for $260 million in cash.
Subject to the terms of the agreements, Century Casinos will acquire the operations of Rocky Gap for $56.1 million, subject to usual working capital adjustments, and VICI The estate will acquire a stake in the land and buildings associated with Rocky Gap for $203.9 million.
The cash consideration is a multiple of approximately 10x the modified property EBITDA Golden Entertainment said the subsequent twelve-month period ended June 30, 2022.
The transaction is expected to close in mid-2023, subject to regulatory approvals and closing conditions. Rocky Gap is one of the six casinos in Maryland. The Maryland casino gambling market is worth about $2 billion annually.
“Rocky Gap is a truly unique destination, and I want to thank all of our team members who work so hard to deliver an outstanding gaming and entertainment experience to our guests,” said Blake Sartini, Chairman and CEO of Golden Entertainment. a permit.
“Since Golden began operating Rocky Gap seven years ago, we have invested our resources to enhance the amenities of the property and our contributions to Maryland. We are confident that Century Casinos will be a great operator of Rocky Gap and a strong partner to the community in the future. Strategically, this transaction will enable Golden to focus on the continued success of our operations in the core markets. The selling price represents an attractive multiple and a premium over our current valuation and will provide us with additional financial flexibility to create shareholder value.”
Golden Entertainment said Macquarie Capital is acting as a financial advisor and that Latham & Watkins is acting as legal counsel in connection with the transaction.
After the sale, Golden Entertainment will own nine casinos, all in southern Nevada. The company also operates video game consoles in approximately 1,100 locations and owns more than 60 traditional bars in Nevada. Golden Entertainment is also licensed in Illinois and Pennsylvania to operate video game stations.