Century Casinos, Inc. announced on August 5 the sale of the casino operations of Century Casino Calgary, to the recently incorporated 2267166 Alberta Ltd.
The buyer paid a CAD$10m ($7.53m/€6.35m/£5.72m) non-refundable fee for the venue, and will pay a quarterly earn-out to Century over the three years post-acquisition.
The agreement sees CRA enter into a lease agreement with the buyer, with the premises bringing an annual net rent of approximately CAD$480,000 for a term of three years.
“This transaction immediately strengthens our balance sheet,” Erwin Haitzmann and Peter Hoetzinger, co-chief executive officers of Century Casinos remarked.
“The Calgary casino is one of our smaller operations, contributing $8.4m in net operating revenue and $1.2m in adjusted EBITDA (approximately half from the casino operations we are selling and half from sports bar, bowling and entertainment operations we will continue operating) in 2019.”