When Eldorado Resorts bought Caesars Entertainment, the new owners pledged to sell off non-core assets and exit the international market, where Eldorado had no experience, and apply those funds to reducing the Caesars debt load. The upcoming sale of the non-U.S. assets of William Hill is drawing lots of bidders and should exceed $1 billion.
Last week the company continued that strategy by agreeing to sell is European and African casinos to Metropolitan Capital, a subsidiary of Silver Point Capital. The company owns 11 properties in the UK, Egypt and South Africa—three casinos in London, the Empire, the Playboy Casino and the Sportsman. It also runs Manchester 235, Alea Nottingham, Alea Glasgow and Rendezvous Brighton in the UK. The agreement also includes Caesars Cairo, Kings and Queens Casino and Ramses Casino in Egypt and Emerald Resort in South Africa. Financial terms of the deal were not immediately released.
“We are very excited about the opportunity to acquire a number of historic and high-end casinos in the UK,” Silver Point founder Edward Mulé said. “The acquisition fits well with Silver Point’s focus on investing in high-quality businesses at opportune times.”
The company has hired Michael Silberling, who at one time ran this portfolio of casinos for Caesars. Most recently he was COO of Mohegan Sun and prior to that he was CEO of Affinity Gaming.
“The world, the global economy, and the hospitality industry have been rocked by the Covid-19 pandemic, but I believe that this team is well positioned to lead a strong rebound of this business, benefitting from their experience and expertise, and a partner that is committed to invest,” Silberling said. “We intend to focus on job creation and investment in this historic business as we partner with our employees, regulators and the communities in which we operate to create a safe, fun and memorable experience for our customers that is second to none.”
