On the day that Eldorado Resorts announced the $1.85m acquisition of Tropicana Entertainment, the Reno-based company has also entered into an agreement to spend $327.5m buying the Grand Victoria riverboat casino in Elgin, Illinois.
The Grand Victoria Casino is currently owned by equal partners MGM Resorts and RBG, which is part of the Hyatt group, each earning a little over $162m from the deal.
The property features 1,088 slot machines, 30 table games, a 12-table poker room and four dining options.
The transaction total represents a purchase multiplier of nine on 12 months’ adjusted EBITDA (to December 31, 2017) which Eldorado expects to reduce to approximately six times or less within 18 months of the transaction close.
Gary Carano, chairman and CEO of Eldorado, said: “This transaction represents yet another milestone for Eldorado as we continue to opportunistically expand our regional gaming platform through accretive acquisitions.
“The addition of Grand Victoria Casino will further diversify the geographic reach of our operations and includes excess contiguous acreage for potential future development.
“Importantly, the acquisition is consistent with our long-term strategy to enhance shareholder value by structuring transactions that are strategically and economically attractive and offer significant upside as we implement our proven operating disciplines,” said Carano.
“Grand Victoria is one of the leading casinos in the Chicagoland market and is extremely well maintained which will allow us, upon closing, to focus on enhancing the guest experience and operating results without the need to undertake capital investments.
“As we work towards closing this acquisition by the end of 2018, we look forward to welcoming the team at Grand Victoria to the Eldorado family.”