Golden Entertainment has successfully concluded a $114 million deal involving the sale of its Distributed Gaming Operations. This transaction, initially announced in March, encompasses Golden Entertainment’s video gaming terminals, historically operated at over 1,000 locations in Nevada and Montana.
Details of the Deal:
- Montana Operations: For its video terminal business in Montana, Golden Entertainment received an aggregate cash consideration of $109 million. An additional $5 million in purchased cash brought the total consideration to $114 million.
- Supply Agreement: J&J, the acquiring entity, has agreed to supply video terminals to Golden Entertainment’s Nevada taverns for a duration of five years.
- Pending Deal: Golden Entertainment’s sale of its Nevada video terminal operations to J&J for $247.5 million is still pending.
M&A Strategy and Future Prospects:
Golden Entertainment’s recent mergers and acquisitions (M&A) activities build upon its previous deals, including the sale of its Rocky Gap Casino Resort in Maryland to Vici Properties for $203.9 million, completed in July 2023. Additionally, the casino’s operating assets were sold to Century Casinos for $56.1 million, making the total deal worth $260 million.
Looking ahead, Golden Entertainment’s Chief Financial Officer, Charles Protell, indicated in the Q2 financial report that the company might explore further acquisitions with its newly acquired resources. The focus would be on targets in the western region, particularly casinos of substantial size that could create synergies with the existing portfolio. While this approach represents a narrow perspective, Protell emphasized that any potential acquisition would be evaluated against the option of simply buying Golden Entertainment stock.
Golden Entertainment’s recent successful sale of its Distributed Gaming Operations and its continued interest in strategic acquisitions signal an active and growth-oriented approach in the dynamic gaming and entertainment industry. The company’s potential future M&A activities will likely be guided by its strategy to identify businesses in the western region that can complement its existing operations and create value for shareholders.