Las Vegas casino operator Golden Entertainment has entered into a definitive agreement with Marnell Gaming LLC to acquire the Edgewater Hotel & Casino Resort and the Colorado Belle Hotel & Casino Resort in Laughlin, Nevada. The purchase price will be based on an 8x multiple of the combined trailing 12 months adjusted EBITDA of both properties as of November 2018, with a minimum price of $168m and a maximum price of $190m.
Blake Sartini, chairman and chief executive officer of Golden, said: “The acquisition of the Edgewater Hotel & Casino Resort and the Colorado Belle Hotel & Casino Resort provides us with an exciting opportunity to expand our portfolio to nine wholly-owned casino resorts in Southern Nevada, solidifying our presence in this growing and attractive gaming market. The transaction is consistent with our strategy to grow our business in an accretive manner for shareholders and Golden is uniquely positioned to benefit immediately from cost synergies related to the acquisition of these properties.”
The two casinos collectively feature over 1,400 slot machines, 40 table games and 2,150 hotel rooms. The properties also feature 11 restaurants and dedicated entertainment venues including the Laughlin Event Center. Both venues are adjacent to Golden’s current Laughlin property, the Aquarius Casino Resort, which has over 1,200 slot machines, circa 30 table games and almost 2,000 hotel rooms. When combined, these three properties will be situated on 55 contiguous acres along the heart of the Laughlin Riverwalk.
Sartini added: “The Marnell family has a long history in the gaming industry including designing, building and owning some of the most iconic resorts that now define the Las Vegas resort corridor. Over the past several years, Marnell Gaming has taken their expertise and created a significant hotel, casino and entertainment presence in Laughlin, and we are excited to build on these well positioned properties. As a result of this transaction, I am pleased to welcome Anthony Marnell III as a shareholder of Golden Entertainment.”