Golden Entertainment has signed an agreement with Marnell Gaming to buy the Edgewater Hotel & Casino Resort and the Colorado Belle Hotel & Casino Resort in Laughlin, Nevada, US.

The purchase price of the properties will be based on an 8.0x multiple of the combined trailing one year adjusted EBITDA as of this November, with  minimum price being $168m and maximum of $190m.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

The purchase price is expected to represent an implied trailing one year adjusted EBITDA multiple of 6.5x, including expected cost synergies and cash acquired.

The purchase consideration will comprise $155m of cash and the balance in restricted stock issued at $28.54 per share.

Golden Entertainment expects to fund the transaction through incremental debt under the credit facility and cash on hand.

The company expects the purchase to be cash flow positive and accretive to operating results immediately.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Golden Entertainment chairman and chief executive officer Blake Sartini 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.”

These two properties collectively offer more than 1,400 slot machines, 40 table games and 2,150 hotel rooms, along with eleven restaurants and entertainment venues including the Laughlin Event Center.

An outdoor arena, Laughlin Event Center features 12,000 seats, and hosts several concerts and other events throughout the year.

The two properties are located next to Golden’s existing Laughlin property, the Aquarius Casino Resort.

Completion of the transaction is expected to be in the first quarter of the next year, subject to regulatory approvals and meeting of closing conditions.

Latham & Watkins LLP acted as legal advisor to Golden Entertainment, while Holland & Hart LLP served Marnell Gaming as legal advisor.