LAS VEGAS--(BUSINESS WIRE)--Golden Entertainment, Inc. (NASDAQ:GDEN) (“Golden” or the “Company”) today announced it has completed the acquisition of approximately 1,000 gaming devices from a distributed gaming operator in the state of Montana, as well as certain non-gaming assets. Golden, through its subsidiary dba Big Sky Entertainment, purchased the assets from C. Lohman Games, Inc., Rocky Mountain Gaming, Inc. and Brandy’s Shoreliner Restaurant, Inc., collectively one of the largest distributed gaming operators in Montana, for total consideration of approximately $20 million, including the issuance of approximately 50,000 shares of Golden’s common stock. The Company funded the cash portion of the acquisition through the use of excess cash and availability under its revolving credit facility. The transaction was previously announced on December 22, 2015.
“Entering the Montana gaming market is an exciting opportunity to expand our disciplined operating strategy to new markets and diversify the geographic reach of our distributed gaming operations,” said Blake L. Sartini, Chief Executive Officer of Golden. “The transaction is aligned with our strategic vision and is expected to be immediately accretive to our operating results. We look forward to working with the local communities where we will operate, continuing to deliver a quality experience to customers and generating returns for shareholders.”
As part of the transaction, the Company entered into strategic relationships with the sellers ensuring operational continuity. The sellers were involved in the installation and operation of gaming and amusement devices, as well as maintaining ATM machines across the state of Montana. The acquisition combines the sellers’ local relationships with Golden’s expertise in distributed gaming, establishing a footprint across Montana.
The Company previously announced plans to continue expanding it’s tavern business in 2016, beginning by adding four Las Vegas tavern locations, including the opening of its first brewery in the first quarter of 2016. In addition to the four previously announced taverns, the Company now expects to add two additional taverns in 2016, including a new Sierra Gold, their flagship tavern brand, at the site of the former Sedona Restaurant & Lounge on West Flamingo Road just east of the 215 Beltway, which is expected to open this summer. The development pipeline remains robust, offering significant upside opportunity to expand through acquisitions of existing taverns and greenfield development of new taverns, along with other opportunities outside of the tavern space.
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 accretion to operating results), 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 Company’s ability to realize the anticipated cost savings, synergies and other benefits from the Golden Gaming merger and the acquisition of distributed gaming assets in Montana 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 approximately 10,300 gaming devices and more than 30 table games in Nevada, Maryland and Montana. The Company owns four casino properties, nearly 50 taverns and operates approximately 770 distributed gaming locations in Nevada, Maryland and Montana. 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.