Golden Entertainment closes acquisition of Montana distributed gaming business

Golden, through its subsidiary 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.