LAS VEGAS--(BUSINESS WIRE)--Golden Entertainment, Inc. (NASDAQ:GDEN) (“Golden” or the “Company”) today announced it has entered into an agreement to acquire distributed gaming assets for a preliminary purchase price of approximately $20 million, including cash and approximately 50,000 shares of Golden Entertainment stock. The Company plans to fund the cash portion of the acquisition through the use of excess cash and availability under its revolving credit facility. As part of the transaction, the Company also will enter into a strategic relationship with the sellers to ensure operational continuity in the acquired assets. The acquired assets include approximately 1,000 gaming devices along with other assets. Management expects the transaction to be immediately accretive to the Company’s earnings per share.
The acquisition is subject to customary closing conditions and is expected to close during the first quarter of 2016.
Forward-Looking Statements
This press release may be deemed to contain forward-looking statements that are subject to the safe harbors created under federal securities laws. Forward-looking statements can generally be identified by the use of words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “intend,” “plan,” “project,” “seek,” “should,” “think,” “will,” “would” and similar expressions. In addition, forward-looking statements include statements regarding the Company’s strategies, objectives, business opportunities and plans for future expansion, developments or acquisitions, anticipated future growth or trends in the Company’s business or key markets, projections of future financial condition or operating results, (including earnings per share accretion), the amount and timing of estimated dividends of the proceeds from the Jamul promissory note sale, as well as other statements that are not statements of historical fact. Forward-looking statements are subject to assumptions, risks and uncertainties that may change at any time, and readers are therefore cautioned that actual results could differ materially from those expressed in any forward-looking statements. Factors that could cause actual results to differ include: the parties’ ability to satisfy the closing conditions to the pending acquisition of distributed gaming assets, the Company’s ability to realize the anticipated cost savings, synergies and other benefits from the Golden Gaming merger and the pending acquisition of distributed gaming assets and integration risks relating to such transactions, changes in national, regional and local economic and market conditions, legislative and regulatory matters, increases in gaming taxes and fees, litigation, increased competition, the Company’s ability to renew its distributed gaming contracts, reliance on key personnel, the level of the Company’s indebtedness and the Company’s ability to comply with covenants in its debt facilities, terrorist incidents, natural disasters, severe weather conditions, the effects of environmental and structural building conditions, the effects of disruptions to the Company’s information technology systems, and other factors affecting the gaming, entertainment and hospitality industries generally. In addition, please refer to the risk factors contained in the Company’s SEC filings available at www.sec.gov, including the Company’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
About Golden Entertainment, Inc.
Golden Entertainment, Inc. owns and operates gaming properties across two divisions – distributed gaming and resort and casino operations. Golden Entertainment operates more than 9,300 gaming devices and 30 table games in Nevada and Maryland. The Company owns four casino properties, nearly 50 taverns and operates more than 670 distributed gaming locations in Nevada and Maryland. Golden Entertainment is focused on maximizing the value of its portfolio by leveraging its scale, leadership position, and proven management capabilities across its two divisions. For more information, visit www.goldenent.com.
