Twin River Worldwide Holdings is to add Jumer’s Casino & Hotel in Rock Island, Illinois, to its roster of properties after entering into a $120m deal with Delaware North Companies Gaming & Entertainment.
Jumer’s features a 40,000 square foot casino floor containing more than 870 slot machines and 25 table games, 205 room hotel with 11 luxury suites, events center, Oculus Sports Bar, Edje nightclub and four restaurants.
The transaction is expected to close during the second quarter of 2021 subject to receipt of required regulatory approvals and other customary closing conditions.
Upon completion, and taking into consideration three additional properties currently under contract, Twin River will operate 13 properties in nine states.
George Papanier, president and CEO of Twin River, commented: “Over the last several years through our efforts with Hard Rock Biloxi, Dover Downs, our Black Hawk Colorado Casinos and most recently Casino KC and Casino Vicksburg, we have demonstrated an ability to integrate and operate acquired casino assets.
“We believe this experience will prove valuable as we look to further enhance Jumer’s financial performance. In particular, we believe there is an opportunity to improve operations and enhance revenues at the property which would allow us to lower our acquisition multiple.”
Based upon Jumer’s adjusted EBITDA for the year ended December 31, 2019, the acquisition is expected to be immediately accretive to earnings. The company expects to finance the purchase price with a combination of cash on hand, cash from ongoing operations, and borrowings under its revolving credit facility.
Papanier added: “Even in the current operating environment amid COVID-19, we advance our disciplined portfolio diversification strategy as we continue to opportunistically expand our regional presence through accretive transactions.
“This acquisition further expands our geographic reach into yet another attractive market. It provides access to a growing gaming market in Illinois, with the potential to capitalise on potentially lucrative sports betting opportunities.
“We look forward to the opportunity to leverage our operational expertise and proven integration approach to drive incremental revenues and cash flow improvements.”