Twin River to enter Illinois with Jumer’s Casino acquisition1st October 2020 1:52 pm GMT
New York-listed casino operator Twin River Worldwide Holdings is looking to capitalise on sports betting opportunities in Illinois after entering an agreement to acquire Jumer's Casino & Hotel for $120m.
Twin River will acquire the Rock Island-based venue from Delaware North Companies Gaming & Entertainment in cash, which will be financed through a combination of cash on hand, cash from ongoing operations, and borrowings under the company’s revolving credit facility.
“Even in the current operating environment amid COVID-19, we advance our disciplined portfolio diversification strategy as we continue to opportunistically expand our regional presence through accretive transactions,” said Twin River president and CEO George Papanier. “This acquisition further expands our geographic reach into yet another attractive market.
“It provides access to a growing gaming market in Illinois, with the potential to capitalize on potentially lucrative sports betting opportunities. We look forward to the opportunity to leverage our operational expertise and proven integration approach to drive incremental revenues and cash flow improvements.”
Jumer's features a 40,000 square foot casino floor containing more than 870 slot machines and 25 table games, a 205 room hotel with 11 luxury suites, an events center, the Oculus Sports Bar, the Edje nightclub and four restaurants.
The total consideration for the transaction represents an implied proforma purchase multiple of approximately 7.4x trailing twelve months adjusted EBITDA. Based on Jumer's adjusted EBITDA for 2019, the acquisition is expected to be immediately accretive to Twin River’s earnings.
Following completion, and taking into consideration three additional properties in the process of being acquired by Twin River, the company will operate 13 properties across nine states.
“Over the last several years through our efforts with Hard Rock Biloxi, Dover Downs, our Black Hawk Colorado Casinos and most recently Casino KC and Casino Vicksburg, we have demonstrated an ability to integrate and operate acquired casino assets,” continued Papanier. “We believe this experience will prove valuable as we look to further enhance Jumer's financial performance.
“In particular, we believe there is an opportunity to improve operations and enhance revenues at the property which would allow us to lower our acquisition multiple.”
The transaction is expected to close during the second quarter of 2021 subject to receipt of required regulatory approvals, and other customary closing conditions.
Shares in Twin River Worldwide Holdings Inc (NSQ:TRWH) closed up 2.58 per cent at $26.27 per share in New York Wednesday in New York.