J&J Ventures Gaming will pay cash consideration of $213.5m (£167.3m/€194.5m) to acquire the Golden Entertainment operations. It will also purchase cash of approximately $37.5m.
The sale was announced in March 2023 as part of a wider deal that also included gaming operations in Montana. Golden Entertainment finalised the $114.0m Montana sale, which covered video lottery terminals, in September.
J&J Ventures is a privately held business and distributed gaming operator with a presence in a number of states.
The wider agreement also covers a wider operational arrangement between J&J Ventures and Golden Entertainment The five-year deal will see J&J Ventures support the gaming operations of Golden Entertainment-branded tavern locations in Nevada.
M&A activity ramps up at Golden Entertainment
The deal represented the latest bout of M&A activity at Golden Entertainment, building on sales in the previous year.
In August 2022, Golden Entertainment agreed to sell the land and buildings of its Rocky Gap Casino Resort in Maryland to Vici Properties for $203.9m. This deal completed in July 2023.
In addition, it sold the casino’s operating assets to Century Casinos for $56.1m, for a total deal worth $260m.
Incidentally, Golden Entertainment said the Rocky Gap sale led to a surge in net profit in Q3. Net profit for the quarter amounted to $241.2m, compared to $14.0m last year.
However, the sale also had a negative impact on revenue. During Q3, revenue was down 7.6% to $257.7m. In addition, distributed gaming business revenue fell 10.2% after the Montana asset sale.
Adjusted EBITDA for the quarter also declined by 12.6% to $53.2m.
In the year-to-date, revenue in the nine months to the end of September was 2.3% lower at $822.5m. Net profit rocketed 271.8% $265.1m but adjusted EBITDA fell 14.6% to $173.8m.