Twin River Worldwide Holdings has entered into a definitive $230m agreement to acquire two casinos from Reno, Nevada headquartered casino entertainment firm Eldorado Resorts.
The deal is to see Twin River gain the operations and real estate of Isle of Capri Casino Kansas City in Missouri and Lady Luck Casino Vicksburg in Mississippi, with the purchase, financed through available cash, expected to be immediately accretive to earnings.
The transaction is subject to receipt of required regulatory approvals and other customary closing conditions, including compliance with the Hart-Scott-Rodino Antitrust Improvements Act of 1976, and is expected to close in early 2020.
George Papanier, president and CEO of TRWH, explained: This transaction continues our focus on creating long-term shareholder value as we strive to develop or acquire assets which we believe will prove accretive to our earnings.
“Isle Kansas City and Lady Luck Vicksburg expand our geographic footprint with assets in attractive markets. We believe these assets are a great fit for our portfolio and see the opportunity to increase the net cash flow from these properties by our redevelopment and operating plans.
“In particular, in Kansas City, where the property lies within an area near downtown that has been targeted by local officials for development, we feel there is opportunity for capital investment in the property which we believe will have a transformative impact and integrate well with local development efforts in the area.”
The Isle of Capri Casino, which overlooks the Missouri River, comprises 40,000 square feet of casino space, 939 gaming machines, 13 table games and two dining venues.
Twin River has detailed expectations to “substantially reposition” the casino, with rendering of one potential redevelopment plan having been put forward (above).
Lady Luck Casino Vicksburg is located along the Mississippi River and features approximately 25 thousand square feet of casino space, 603 slot machines, eight electronic table games, three dining venues and an 89 room hotel.