Golden Ent. to acquire Edgewater Casino, Colorado Belle Casino
July 16, 2018 10:42 AM
by Robert Mann
Golden Entertainment, Inc. today (Monday) has announced it is increasing its footprint in Laughlin with word that it has entered into a definitive agreement with Marnell Gaming to acquire the Edgewater Hotel & Casino Resort and the Colorado Belle Hotel & Casino Resort.
The company says the purchase price will be based on an 8.0x multiple of the combined trailing twelve months adjusted EBITDA of both properties as of November 2018, with a minimum price of $168 million and a maximum price of $190 million. Including expected cost synergies and cash acquired, the purchase price is expected to represent an implied trailing twelve months adjusted EBITDA multiple of 6.5x.
Blake Sartini, Chairman and Chief Executive Officer of Golden, said, "The acquisition of the Edgewater Hotel & Casino Resort and the Colorado Belle Hotel & Casino Resort provides us with an exciting opportunity to expand our portfolio to nine wholly-owned casino resorts in Southern Nevada, solidifying our presence in this growing and attractive gaming market. The transaction is consistent with our strategy to grow our business in an accretive manner for shareholders and Golden is uniquely positioned to benefit immediately from cost synergies related to the acquisition of these properties.”
The Edgewater Hotel & Casino Resort and the Colorado Belle Hotel & Casino Resort collectively feature over 1,400 slot machines, 40 table games and 2,150 hotel rooms. The properties also feature eleven restaurants and dedicated entertainment venues including the Laughlin Event Center.
The two properties are adjacent to Golden’s current Laughlin property, the Aquarius Casino Resort. Golden acquired Aquarius along with The Stratosphere and two Arizona Charlie’s branded casino/hotels in Las Vegas last year.
Sartini added, “The Marnell family has a long history in the gaming industry including, designing, building and owning some of the most iconic resorts that now define the Las Vegas resort corridor. As a result of this transaction, I am pleased to welcome Anthony Marnell III as a shareholder of Golden Entertainment.”
The transaction is expected to close in the first quarter of 2019, subject to customary closing conditions and the receipt of all required regulatory approvals.