Eldorado Resorts recently completed the purchase of Isle of Capri Casinos in a cash and stock transaction. As part of the deal, Eldorado acquired all outstanding Isle of Capri shares for per share, or 1.638 shares of Eldorado common stock. The combined company has annual revenue of more than .7 billion
Announced last September, the deal doubles the size of Reno-based Eldorado by adding 12 casino resorts. The new company will include a total of 19 casino properties in 10 states, offering 20,000 slot machines and video lottery terminals, 550 table games and 6,500 hotel rooms. The sale included the Isle Casino Hotel on the Bettendorf riverfront and Isle Casino Hotel in Waterloo. Isle also operated Lady Luck Casino in Marquette, which was sold for $40 million and was not part of the Eldorado acquisition.
Eldorado Chairman and Chief Executive Officer Gary Carano said, “Our acquisition of Isle of Capri marks a significant milestone in Eldorado’s history of growth through strategic, accretive acquisitions. The combination significantly expands the scale of our gaming operations, further diversifies our geographic reach into new markets and minimizes market-specific risk.”
Eldorado’s stock will continue to be traded on the NASDAQ as ERI. Eldorado acquired all outstanding shares of Isle of Capri for $23.00 or 1.638 shares of Eldorado common stock. Eldorado President and Chief Financial Officer Tom Reeg said, “The financing for the transaction was executed at favorable rates that should permit us to generate more incremental annual free cash flow than we originally expected. With our experienced management team, operating discipline and return-focused approach to capital expenditures, we believe the acquisition represents another meaningful opportunity for Eldorado Resorts and our existing and new shareholders.”
The company has multiplied itself six-fold since it acquired MTR Gaming in 2014. Carano stated, “We are delighted to welcome the Isle shareholders and team members to the Eldorado family. We believe that Eldorado is positioned for continued growth with a portfolio of premiere regional gaming assets, a solid balance sheet and an attractive weighted average cost of capital. Our experience in integrating the MTR assets and Silver Legacy and Circus Circus operations will serve us well as we add the Isle of Capri assets to our operating base.”
Carano added Eldorado now plans to align systems and best practices. He said, “We intend to implement our strategy of focusing on margin enhancement and customer service and experiences across the portfolio by marrying best practices from both companies. Led by our gaming, hotel management and food and beverage teams with a long-term record of operating execution and M&A integration, we believe that Eldorado Resorts is positioned for near- and long-term success and the creation of value for our shareholders.”
