Twin River Worldwide Holdings has entered into a definitive agreement to acquire the operations and real estate of Isle of Capri Casino Kansas City in Missouri and Lady Luck Casino Vicksburg in Mississippi from Eldorado Resorts. The deal, worth $230m in cash, is subject to certain customary post-closing adjustments.
The purchase price represents an implied trailing 12-month proforma EBITDA multiple of approximately 8.4x for the properties on a combined basis. The multiple excludes the impact of any potential cost synergies or possible revenue enhancement opportunities from operational improvements and anticipated capital investment.
The acquisition is expected to be immediately accretive to earnings and the company expects to finance the purchase price with available cash.
“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,” noted George Papanier, President and CEO of TRWH. “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.”
Isle of Capri Casino Kansas City overlooks the Missouri River in close proximity to downtown Kansas City and the Berkeley Riverfront. The property comprises approximately 40 thousand square feet of casino space, 939 gaming machines, 13 table games and two dining venues. The company expects to substantially reposition the casino.
Lady Luck Casino Vicksburg features approximately 25 thousand square feet of casino space, 603 slot machines, eight electronic table games, three dining venues and an 89 room hotel.
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, as amended, and is expected to close in early 2020.