Golden Entertainment has signed a definitive agreement with J&J Ventures Gaming to “divest its distributed gaming operations” in the states of Nevada and Montana.
The two have agreed to the transaction for an aggregate cash consideration of $322.5m, along with another $39m of estimated purchased cash once the deal is completed.
In a breakdown by state, the group will buy Golden’s Nevada distributed gaming operations for a total of $213.5m, plus another estimated $34m of purchased cash. Operations in Montana will be sold for $109m, along with an estimated $5m of purchased cash. All transactions will be subject to “customary working capital adjustments.”
Under the terms of the agreement, J&J Ventures will support Golden’s branded Nevada tavern destinations’ gaming operations at “financial terms consistent with the Company’s past practice.”
Golden Entertainment Chairman and CEO Blake Sartini commented: “Our leading Distributed Gaming Operations in Nevada and Montana were built over the last 20 years through the hard work and dedication of our team members who provide exceptional service and support to our valued route partners.
“We believe this transaction will provide further success for our route partners through sharing of best practices and new technology.”
Sartini went on to add that the company will maintain its focus on providing quality service to its partners while under new ownership.
He said in closing: “We anticipate our Distributed Gaming team members will continue to serve our route partners with the same dedication under J&J Gaming’s 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 tavern portfolio.
“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 additional value for our shareholders.”