Golden Entertainment has announced that it has reached agreement with American Casino and Entertainment Properties to buy The Stratosphere with its hotel and tower, and two other Las Vegas casinos, Arizona Charlie’s Decatur and Arizona Charlie’s Boulder, plus another casino in Nevada, the Aquarius Casino Resort in Laughlin.
Source: Tim Jarrett
The vendor, American C and E, will generate $413m in revenues and $103m in EBITDA this year. The purchase price is $850m, of which $781m will be in cash, plus four million shares in Golden, which will go to American’s owner, Whitehall Street Real Estate Partners 2007, a private equity fund. Whitehall will then hold 15 per cent of Golden’s shares.
Golden will then operate over 15,000 slot machines, 114 table games and 5,100 hotel rooms over eight casinos, plus 1,000 gaming locations to include one of the biggest street operations in Nevada. Golden also has operations in Montana and owns a casino resort in Maryland. It also has future development possibilities in the 15 acres of land around The Stratosphere.
