British Columbia based Great Canadian Gaming has announced that the company has reached an agreement relating to the sale of all its shares in Great American Gaming.
The company, which operates 28 gaming, entertainment and hospitality facilities in Ontario, British Columbia, New Brunswick, Nova Scotia and Washington State, is to shed its subsidiary to Maverick Gaming for a cash consideration of $56m.
Great American currently owns and operates three Washington State casino properties, Everett, Tukwila and Lakewood, with it also representing all of the US operations of the company.
The purchase and sale of Great American is subject to the consent of Washington State Gambling Commission regulatory approvals and customary closing conditions, with the close of the deal expected to occur in the third quarter of this year.
Rod Baker, chief executive officer of Great Canadian Gaming, commented: “The sale of Great American will allow Great Canadian to focus on its core growth markets, as we continue to execute on our operational and development plans for 2019 and beyond.
“The divestiture is in line with the company’s stated strategic goals, and demonstrates our commitment to exploring opportunities to create shareholder value.”
Last month Great Canadian Gaming praised a landmark 12 months, which brought huge revenue increases complemented by a series of strategic acquisition and integrations.
In its latest financial results Great Canadian saw fourth quarter and full year revenue increases of 126 per cent and 99 per cent to CA$342m (2017: CA$151m) and CA$1.2bn (2017: $614.2m) respectively.
The company, which expanded the gaming floor of its Great Blue Heron Casino to encapsulate 200 new slot machines, also saw the fourth quarter deliver adjusted EBITDA of CA$120.3m, rising 145 per cent from CA$49.2m, with net earnings rising 281 per cent to CA$49.2m (2017: $12.9m).
On a full year basis adjusted EBITDA was boosted 113 per cent to CA$474.4m (2017: CA$223m), and net earnings of CA$239.8m, a 180 per cent rise from $85.7m.