Business
Century Casinos Enters into Definitive Agreement to Acquire the Operations of Rocky Gap Casino Resort in Maryland
COLORADO SPRINGS, Colo., Aug. 25, 2022 /PRNewswire/ -- Century Casinos, Inc. (Nasdaq Capital Market®: CNTY) ("Century Casinos" or the "Company"), announced
About this update from Century Casinos, Inc.
[{"type":"text","content":"COLORADO SPRINGS, Colo., Aug. 25, 2022 /PRNewswire/ -- Century Casinos, Inc. (Nasdaq Capital Market®: CNTY) (\"Century Casinos\" or the \"Company\"), announced that it entered into a definitive agreement to acquire the operations of Rocky Gap Casino Resort (\"Rocky Gap\"), from Lakes Maryland Development, LLC for approximately $56 million, subject to certain adjustments. The Company will fund the acquisition using cash from its balance sheet.\n\n \n \n \n \n \n \n\n \nSimultaneous with the closing of the transaction, an affiliate of VICI Properties Inc. (NYSE: VICI) (\"VICI\") will acquire the real estate assets for approximately $204 million and the Company will amend its triple net lease agreement with VICI to add the Rocky Gap property. The amendment to the lease will include initial annual rent for the Rocky Gap casino of approximately $15.5 million.\nThe purchase price for the casino operations represents an implied 2021 earnings before interest, taxes, depreciation and amortization (\"EBITDA\") multiple of 4.9x. The multiple excludes any potential cost synergies and operational improvements and deducts annual rent from the VICI lease from EBITDA. The acquisition is expected to be immediately accretive to the Company's earnings.\n\"The addition of Rocky Gap is another important milestone in our pursuit to acquire prime US assets. With this acquisition and our pending acquisition of the Nugget Casino Resort in Nevada, we will oversee a US portfolio that reaches from east to west,\" Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos remarked. \"We are looking forward to working with the Maryland Lottery and Gaming Control Agency to obtain gaming approvals and with the casino leadership and team members to effect a smooth transition and great future for Rocky Gap,\" they concluded.\nRocky Gap is located in Flintstone, Maryland in Rocky Gap State Park, which attracts over half a million visitors annually. The full-service resort sits on approximately 270 acres and includes an 18-hole golf course designed by Jack Nicklaus, a 5,000 square-foot events center, several meeting spaces, a spa, and several outdoor activities. The property consists of over 25,000 square feet of gaming floor, 630 slot machines, 16 table games, 198 hotel rooms and five food and beverage venues. Rocky Gap Casino Resort had...