American gaming company Golden Entertainment unveiled a definitive agreement to divest its gaming operations in the states of Nevada and Montana. As announced by the company, it has agreed to sell these assets to J&J Ventures Gaming for aggregate cash consideration of $322.5 million.
Golden Entertainment explained that the sale of its Nevada-based business will see J&J pay $213.5 million plus an estimated $34 million of purchased cash. Meanwhile, J&J will pay $109 million plus an estimated $5 million of purchased cash for the acquisition of the operator’s Montana assets. Both sales are subject to customary working capital adjustments.
Under the terms of the agreement, J&J Gaming will support the gaming operations of Golden Entertainment’s branded tavern locations in Nevada for the next five years.
Golden noted that the transactions should close near the end of 2023 and are all subject to customary regulatory approvals and closing conditions.
Sartini Is Optimistic about the Deal
Blake Sartini, Golden Entertainment’s chair and chief executive, addressed the sale in a new statement. He noted that the company’s Distributed Gaming Operations in the two states have been built thanks to two decades of hard work and dedication. Because of that, the CEO praised his team for its exceptional work and the service it has provided to Golden’s route partners.
We believe this transaction will provide further success for our route partners through sharing of best practices and new technology. We anticipate our Distributed Gaming team members will continue to serve our route partners with the same dedication under J&J Gaming’s ownership.
Blake Sartini, chair & CEO, Golden Entertainment
Sartini added that he is confident in J&J Gaming’s future success and that this confidence is highlighted by the latter company’s decision to support Golden’s wholly-owned tavern portfolio. The CEO concluded that these transactions will allow the company to focus its management team and capital on its portfolio of casinos and taverns in the Silver State, thus creating additional value for shareholders.
In 2022, Golden Entertainment also signed an agreement to sell its Rocky Gap Casino Resort to Century Casinos. The $260 million deal further highlighted Golden’s ambition to streamline its business and reduce losses. 2022 saw the company’s revenues fluctuate, which may have prompted the company to proceed with the current deal.
Currently, Golden Entertainment operates around 16,800 slots, more than 100 gaming tables and 6,200+ hotel rooms. The company owns nine casinos in Southern Nevada and one in Maryland in addition to 60 traditional taverns in Nevada.