Golden Entertainment Closes Acquisition of Montana Distributed Gaming Business
February 01 2016 - 8:00AM
Business Wire
Golden Entertainment, Inc. (NASDAQ:GDEN) (“Golden” or the
“Company”) today announced it has completed the acquisition of
approximately 1,000 gaming devices from a distributed gaming
operator in the state of Montana, as well as certain non-gaming
assets. Golden, through its subsidiary dba Big Sky Entertainment,
purchased the assets from C. Lohman Games, Inc., Rocky Mountain
Gaming, Inc. and Brandy’s Shoreliner Restaurant, Inc., collectively
one of the largest distributed gaming operators in Montana, for
total consideration of approximately $20 million, including the
issuance of approximately 50,000 shares of Golden’s common stock.
The Company funded the cash portion of the acquisition through the
use of excess cash and availability under its revolving credit
facility. The transaction was previously announced on December 22,
2015.
“Entering the Montana gaming market is an exciting opportunity
to expand our disciplined operating strategy to new markets and
diversify the geographic reach of our distributed gaming
operations,” said Blake L. Sartini, Chief Executive Officer of
Golden. “The transaction is aligned with our strategic vision and
is expected to be immediately accretive to our operating results.
We look forward to working with the local communities where we will
operate, continuing to deliver a quality experience to customers
and generating returns for shareholders.”
As part of the transaction, the Company entered into strategic
relationships with the sellers ensuring operational continuity. The
sellers were involved in the installation and operation of gaming
and amusement devices, as well as maintaining ATM machines across
the state of Montana. The acquisition combines the sellers’ local
relationships with Golden’s expertise in distributed gaming,
establishing a footprint across Montana.
The Company previously announced plans to continue expanding
it’s tavern business in 2016, beginning by adding four Las Vegas
tavern locations, including the opening of its first brewery in the
first quarter of 2016. In addition to the four previously announced
taverns, the Company now expects to add two additional taverns in
2016, including a new Sierra Gold, their flagship tavern brand, at
the site of the former Sedona Restaurant & Lounge on West
Flamingo Road just east of the 215 Beltway, which is expected to
open this summer. The development pipeline remains robust, offering
significant upside opportunity to expand through acquisitions of
existing taverns and greenfield development of new taverns, along
with other opportunities outside of the tavern space.
Forward-Looking Statements
This press release may be deemed to contain forward-looking
statements that are subject to the safe harbors created under
federal securities laws. Forward-looking statements can generally
be identified by the use of words such as “anticipate,” “believe,”
“continue,” “could,” “estimate,” “expect,” “forecast,” “intend,”
“plan,” “project,” “seek,” “should,” “think,” “will,” “would” and
similar expressions. In addition, forward-looking statements
include statements regarding the Company’s strategies, objectives,
business opportunities and plans for future expansion, developments
or acquisitions, anticipated future growth or trends in the
Company’s business or key markets, projections of future financial
condition or operating results (including accretion to operating
results), the amount and timing of estimated dividends of the
proceeds from the Jamul promissory note sale, as well as other
statements that are not statements of historical fact.
Forward-looking statements are subject to assumptions, risks and
uncertainties that may change at any time, and readers are
therefore cautioned that actual results could differ materially
from those expressed in any forward-looking statements. Factors
that could cause actual results to differ include: the Company’s
ability to realize the anticipated cost savings, synergies and
other benefits from the Golden Gaming merger and the acquisition of
distributed gaming assets in Montana and integration risks relating
to such transactions, changes in national, regional and local
economic and market conditions, legislative and regulatory matters,
increases in gaming taxes and fees, litigation, increased
competition, the Company’s ability to renew its distributed gaming
contracts, reliance on key personnel, the level of the Company’s
indebtedness and the Company’s ability to comply with covenants in
its debt facilities, terrorist incidents, natural disasters, severe
weather conditions, the effects of environmental and structural
building conditions, the effects of disruptions to the Company’s
information technology systems, and other factors affecting the
gaming, entertainment and hospitality industries generally. In
addition, please refer to the risk factors contained in the
Company’s SEC filings available at www.sec.gov, including the
Company’s most recent Annual Report on Form 10-K and Quarterly
Reports on Form 10-Q. Readers are cautioned not to place undue
reliance on any forward-looking statements, which speak only as of
the date of this press release. The Company undertakes no
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or
otherwise.
About Golden Entertainment, Inc.
Golden Entertainment, Inc. owns and operates gaming properties
across two divisions – distributed gaming and resort and casino
operations. Golden Entertainment operates approximately 10,300
gaming devices and more than 30 table games in Nevada, Maryland and
Montana. The Company owns four casino properties, nearly 50 taverns
and operates approximately 770 distributed gaming locations in
Nevada, Maryland and Montana. Golden Entertainment is focused on
maximizing the value of its portfolio by leveraging its scale,
leadership position, and proven management capabilities across its
two divisions. For more information, visit www.goldenent.com.
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Investor Relations:ICR Inc.702.891.4264ir@goldenent.com
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