Eldorado Resorts, Inc. announced Monday (April 16, 2018) that it will buy the Grand Victoria Casino in Elgin for $327.5 million in cash.
According to a Eldorado Resorts news release, the company says it can increase profitability in 18 months “based on expected operating synergies and cost savings.”
The company intends to fund the proposed transaction using cash from previously announced asset sales, cash from ongoing operations and borrowings under its revolving credit facility.
The transaction is expected to close in the fourth quarter of 2018, subject to regulatory approvals and other customary closing conditions and is subject to a customary working capital adjustment.
There is no news at this time whether the sale of the company might affect the Grand Victoria Riverboat Fund, which supports projects that help strengthen Kane County communities and improve the quality of life for area residents. In 2017, the Kane County Board budgeted $775,307 for the initiative. However, past changes of ownership have not affected that funding agreement.
Gary Carano, chairman and CEO of Eldorado, said the transaction represents yet another milestone for Eldorado as the company continues to expand its regional gaming platform through acquisitions.
“The addition of Grand Victoria Casino will further diversify the geographic reach of our operations and includes excess contiguous acreage for potential future development,” he said. “Importantly, the acquisition is consistent with our long-term strategy to enhance shareholder value by structuring transactions that are strategically and economically attractive and offer significant upside as we implement our proven operating disciplines.
“Grand Victoria is one of the leading casinos in the Chicagoland market and is extremely well maintained which will allow us, upon closing, to focus on enhancing the guest experience and operating results without the need to undertake capital investments. As we work towards closing this acquisition by the end of 2018, we look forward to welcoming the team at Grand Victoria to the Eldorado family.”
Grand Victoria Casino is about 40 miles west of downtown Chicago along the banks of the Fox River.
The property features 1,088 slot machines, 30 table games, a 12-table poker room and four dining options, including Prime BurgerHouse, the award-winning Buckinghams Steakhouse & Lounge, the Indulge Show Kitchen Buffet and the 24-hour Crave Deli.
It also offers 7,495 square feet of meeting and banquet space, event and concert facilities, a 1,450-space parking garage, and additional surface parking for 600 vehicles.
Tom Reeg, president and CFO of Eldorado, said the transaction represents yet another step in Eldorado’s efforts to bring additional scale.
“Over the last several years through our efforts with the MTR assets, the Silver Legacy and Circus Circus in Reno, and most recently the large Isle of Capri portfolio, we have clearly demonstrated an ability to integrate and operate acquired casino operations,” he said. “We believe this experience will prove valuable as we build on the work done by the team at Grand Victoria to further enhance its financial performance. In particular, we believe there is a significant opportunity to improve the operations at the property.”
BofA Merrill Lynch is acting as exclusive financial advisor and Milbank Tweed Hadley & McCloy LLP is acting as legal counsel to Eldorado in connection with the proposed transaction.
About Eldorado Resorts, Inc.
Eldorado Resorts is a leading casino entertainment company that owns and operates twenty properties in ten states, including Colorado, Florida, Iowa, Louisiana, Mississippi, Missouri, Nevada, Ohio, Pennsylvania and West Virginia. In aggregate, Eldorado’s properties feature approximately 21,000 slot machines and VLTs and 600 table games, and over 7,000 hotel rooms. For more information, please visit www.eldoradoresorts.com.
SOURCE: Eldorado Resort news release