Leading table game equipment supplier Gaming Partners International Corporation announced that it has entered into a binding letter of intent to acquire the assets and subsidiaries of Kansas City-based GemGroup Inc., a privately held manufacturer of casino currency, cards and table layouts primarily sold under the Gemaco brand.
The companies anticipate closing the all-cash transaction on or before June 30, 2014.
“We are very pleased to acquire the Gemaco brand of products along with their manufacturing expertise,” said Gregory Gronau, GPIC’s president and CEO. “We look forward to partnering with them to strengthen and expand our casino offerings. This acquisition strengthens our card manufacturing capabilities and increases our U.S. market share in both playing cards and table layouts, two important sources of recurring revenue.
“Further, it expands our product offerings in the growing Asia-Pacific region, as Gemaco has a strong market presence in the layout business there. Consolidated revenues for GPIC have the potential to grow by over 30 percent as a result of the acquisition.”
Kaye Summers, president and CEO of GemGroup, added, “We are pleased to be joining forces with Gaming Partners International. This transaction will be mutually beneficial for our customers and employees given both companies’ strong brand recognition in casino products. Moreover, GPIC has committed to continue operations in the greater Kansas City area.”
