American casino operator Twin River Worldwide Holdings Incorporated has announced the signing of an all-cash deal that is to see it pay some $120 million so as to acquire Jumer’s Casino and Hotel.
The Providence-headquartered firm used an official Thursday press release to declare that the western Illinois facility is currently owned by Delaware North Companies Gaming and Entertainment Incorporated but is expected to change hands by the end of June ‘subject to receipt of required regulatory approvals and other customary closing conditions’ as well as ‘a customary working capital adjustment’.
Twin River Worldwide Holdings Incorporated detailed that the property in the city of Rock Island features a 205-room hotel with eleven luxury suites alongside a 40,000 sq ft casino offering approximately 870 slots and 25 gaming tables. It explained that the venue moreover comes complete with an events center, four restaurants and a nightclub with its purchase due to take the Rhode Island-based operator’s nationwide portfolio of gambling-friendly properties up to 13.
George Papanier, President and Chief Executive Officer for Twin River Worldwide Holdings Incorporated, used the press release to proclaim that the transaction is to be funded ‘with a combination of cash on hand, cash from ongoing operations and borrowings’ and will advance his firm’s ‘ongoing portfolio diversification strategy’ by giving its immediate access to the ‘attractive Illinois gaming market.’ He furthermore asserted that the arrangement ‘is expected to be immediately accretive to earnings’ and will position the up-and-coming operator to potentially capitalize on sportsbetting opportunities in the Midwestern state.
Read a statement from Papanier…
“This acquisition further expands our geographic reach into yet another attractive market. It provides access to a growing gaming market in Illinois with the potential to capitalize on lucrative sportsbetting opportunities. We look forward to the opportunity to leverage our operational expertise and proven integration approach to drive incremental revenues and cash flow improvements.”
Twin River Worldwide Holdings Incorporated has been busy of late after inking a similar arrangement with larger compatriot Eldorado Resorts Incorporated in July for the Casino Vicksburg and Casino KC developments. The New York-listed firm had earlier purchased Colorado’s Golden Gates Casino, Mardi Gras Casino and Golden Gulch Casino properties and is soon set to take over the running of the Eldorado Resort Casino Shreveport, Montbleu Resort Casino and Spa Lake Tahoe and 1,251-room Bally’s Atlantic City venues.
Papanier’s statement read…
“Over the last several years we have demonstrated an ability to integrate and operate acquired casino assets. We believe this experience will prove valuable as we look to further enhance the financial performance of Jumer’s Casino and Hotel. In particular, we believe there is an opportunity to improve operations and enhance revenues at the property, which will allow us to lower our acquisition multiple.”