Eldorado Resorts to acquire Isle of Capri for $1.7bn
Eldorado Resorts has entered into a definitive merger agreement to acquire all of the outstanding shares in rival US casino operator Isle of Capri for a total consideration of approximately $1.7 billion (€1.5 billion).
Under the deal, Eldorado will pay $23 in cash or 1.638 shares of its own common stock for each share, with the agreement to include $929 million of long-term debt of Isle of Capri and its subsidiaries.
Subject to customary closing conditions, the transaction will comprise 58% cash and 42% Eldorado common stock.
The proposed agreement has been unanimously approved by the boards of both companies.
Eldorado said the deal will enhance its “operational and geographic diversity”, with the company to add 13 casino resorts to its property portfolio, as well as approximately 20,800 slot machines and video lottery terminals, more than 560 table games and over 6,500 hotel rooms.
“The acquisition of Isle of Capri represents a transformational growth opportunity for Eldorado and is a significant milestone in the successful ongoing execution of our long-term strategy to opportunistically expand our regional gaming platform through accretive acquisitions,” Eldorado chairman and chief executive Gary Carano said.
“Strategically, the combination builds the scale of our gaming operations and further diversifies the geographic reach of our operations without any overlap with our existing properties.
“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.”
Eric Hausler, chief executive of Isle of Capri, added: “We are pleased to reach this agreement with Eldorado Resorts, which provides Isle of Capri shareholders with substantial and immediate value, as well as the opportunity to participate in the upside potential of the combined company.
“I look forward to working closely with the Eldorado team to bring our companies together to realise the benefits of this compelling combination and ensure a smooth transition.”
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