Golden Entertainment, Inc. has agreed to sell its gaming operations in Nevada and Montana to an Illinois-based company.
The deal is for aggregate cash consideration of $322.5 million plus $39 million of estimated purchased cash at closing.
J&J Ventures Gaming, LLC will acquire Golden’s distributed gaming operations in Nevada for $213.5 million plus an estimated $34 million of purchased cash and Golden’s distributed gaming operations in Montana for $109 million plus an estimated $5 million of purchased cash.
In addition, Golden will enter into a five-year agreement with J&J Gaming under which J&J Gaming will support the gaming operations of Golden’s branded tavern locations in Nevada “at financial terms consistent with the company’s past practice.”
“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,” said Blake Sartini, Chairman and Chief Executive Officer of Golden.
“We believe this transaction will provide further success for our route partners through sharing of best practices and new technology. 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.”
The privately held J&J Gaming is one of the largest terminal operators in Illinois and Pennsylvania. J&J Amusements is a leading operator of non-gaming devices like dart machines, pool tables, jukeboxes, ATMs, and other amusement devices.
The transactions are expected to close before year-end, subject to customary regulatory approvals and closing conditions.