Aquarius owner buying Edgewater, Colorado Belle
LAS VEGAS — Golden Entertainment, Inc., has entered into an agreement with Marnell Gaming LLC, to acquire the Edgewater Hotel and Casino Resort and the Colorado Belle Hotel and Casino Resort in Laughlin.
The purchase price, based on a multiple of the combined trailing 12 months adjusted earnings before interest, taxes, depreciation and amortization of both properties as of November 2018, will be a minimum of $168 million and a maximum of $190 million, according to a release from Golden Entertainment, Inc.
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.
It isn’t clear what impact the transaction will have on the Laughlin facilities.
This is not Golden Entertainment’s first purchase in Laughlin. Golden acquired the Aquarius Casino Resort a little more than a year ago.
This new purchase will be funded with $155 million in cash and the balance in restricted stock issued at a price of $28.54 per share.
The transaction will be financed with incremental debt under the company’s credit facility and cash on hand. The company expects the acquisition to be cash flow positive and immediately accretive to operating results.
“The acquisition of the Edgewater Hotel and Casino Resort and the Colorado Belle Hotel and 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,” Blake Sartini, Golden chairman and chief executive officer, said in a prepared statement. “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.”
Golden Entertainment, through its distributed gaming business in Nevada and Montana, also operates slot machines at more than 1,000 locations and owns nearly 60 traditional taverns in Nevada.
The Edgewater and the Colorado Belle collectively have more than 1,400 slot machines, 40 table games and 2,150 hotel rooms. The properties also feature 11 restaurants and dedicated entertainment venues including the Laughlin Event Center.
The Laughlin Event Center has featured a wide range of concerts such as Kid Rock, Toby Keith and Keith Urban; Kelsea Ballerini will perform in October.
While Marnell Gaming LLC is selling the Belle and Edgewater, the family is acquiring holdings in Golden Entertainment as part of the transaction.
“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,” Sartini said. “Over the past several years, Marnell Gaming has taken their expertise and created a significant hotel, casino and entertainment presence in Laughlin, and we are excited to build on these well positioned properties. As a result of this transaction, I am pleased to welcome Anthony Marnell III as a shareholder of Golden Entertainment.”