Golden Entertainment agrees to deal with J&J Gaming
Golden Entertainment, Inc. has agreed to sell its gaming operations in Nevada and Montana to an Illinois-based company.
The agreement provides for aggregate cash consideration of $322.5 million plus an estimated $39 million in purchased cash at closing.
J&J Venture Gaming, LLC to acquire Golden’s Nevada distributed gaming operations for $213.5 million plus approximately $34 million in purchased cash and Golden’s distributed gaming operations in Montana for $109 million plus approximately $5 million in purchased cash .
In addition, Golden will enter into a five-year agreement with J&J Gaming under which J&J Gaming will support Golden-branded tavern gaming operations in Nevada “on financial terms consistent with the company’s past practice.”
“Our major distributed gaming operations in Nevada and Montana have been built over the past 20 years through the hard work and dedication of our team members who provide exceptional service and support to our valued route partners,” said Blake Sartini, President and Chief Executive Officer of D’oro.
“We believe this transaction will provide further success for our route partners through the sharing of best practices and new technologies. We anticipate that our Distributed Gaming team members will continue to serve our path partners with the same dedication under the J&J Gaming 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 portfolio of taverns. 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 added value for our shareholders.”
Privately held J&J Gaming is one of the largest terminal operators in Illinois and Pennsylvania. J&J Amusements is a leading operator of non-gaming devices such as darts, pool tables, jukeboxes, ATMs and other amusement devices.
The transactions are expected to close before the end of the year, subject to customary regulatory approvals and closing conditions.