Eldorado Resorts (NASDAQ: ERI) expanded its nationwide footprint Monday with the acquisition of a new hotel-casino property.
The Reno-based company closed on its acquisition of Isle of Capri Casinos, adding 12 more properties to its portfolio and creating a larger regional gaming business worth $1.7 billion. Eldorado acquired Isle of Capri for $23.00 in cash per share or 1.638 shares of Eldorado common stock. Eldorado first announced its plans to acquire the company last year.
“We are delighted to welcome the Isle shareholders and team members to the Eldorado family,” said Eldorado Chairman and CEO Gary Carano. “We believe that Eldorado Resorts is positioned for near- and long-term success and the creation of value for our shareholers
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The acquisition of Isle of Capri further expands the list to 19 total properties in 10 states, which now also include Colorado, Missouri, Mississippi and Florida.
The transaction comprised of 58 percent cash totaling $552 million with the remaining 42 percent coming in the form of 28.5 million newly issued shares of Eldorado stock. Eldorado has about 75.6 million in outstanding common shares after the acquisition.
The merger should lead to a cost savings of $35 million in the next year, according to Eldorado. With the addition of Isle of Capri, Eldorado Resorts properties combined have about 20,000 slot machines and video lottery terminals, more than 550 tables games and more than 6,500 hotel rooms.
The acquisition also continues the company’s approach of generating growth and diversifying its portfolio through mergers and acquisitions, in addition to property improvements.
“The combination significantly expands the scale of our gaming operations, further diversifies our geographic reach into new markets and minimizes market-specific risk,” Carano said.