Gambling operator Golden Entertainment has entered into definitive agreements to divest its distributed gaming operations in Nevada and Montana to J&J Ventures Gaming.
Golden Entertainment will sell the assets for aggregate cash consideration of $322.5m, plus an additional $39.0m of estimated purchased cash at closing.
J&J Ventures, a privately held business and distributed gaming operator with a presence in a number of states, will acquire Golden’s distributed gaming operations for $213.5m plus an estimated $34.0m of purchased cash.
The agreements also cover J&J Ventures acquiring Golden’s distributed gaming operations in Montana for $109.0m plus an estimated $5.0m of purchased cash, subject to customary working capital adjustments.
In addition, Golden will enter into a five-year agreement with J&J Gaming under which J&J Gaming will support the gaming operations of Golden’s branded tavern locations in Nevada.
The transactions are expected to close before the end of the year end, subject to customary regulatory approvals and closing conditions.
“Our leading distributed gaming operations in Nevada and Montana were built over the last 20 years through the hard work and dedication of our team members who provide exceptional service and support to our valued route partners,” Golden’s chairman and chief executive Blake Sartini said.
“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.
“Our confidence in J&J Gaming’s future success is highlighted by our new long-term agreement with J&J Gaming to service Golden’s wholly owned tavern portfolio.
“For Golden, these transactions will allow us to focus our management team and capital on our portfolio of wholly owned casinos and taverns in Nevada and create additional value for our shareholders.”
The sales come after Golden last week reported largely steady year-on-year figures across both its fourth quarter and full-year 2022 results.
The company’s total revenue was reported at $1.12bn for the full year, a slight increase of 2.3% compared to 2021, despite a slight drop in Q4 revenue to $279.7m from $281.9m.