Pursuant to the terms of the purchase agreement, J&J Gaming acquired Golden Entertainment’s Montana Distributed Gaming Operations for an aggregate cash consideration of approximately $109 million. Latham & Watkins LLP acted as a legal counsel to Golden Entertainment for this transaction.
The sum is subject to customary working capital adjustments, plus purchased cash (comprised of cash and cash equivalents related to such operations at the time of closing) of approximately $5 million, the company said in a statement.
The statement further added that the sale of Golden Entertainment's Nevada slot machine business remains pending, subject to satisfaction of customary closing conditions, including receipt of gaming regulatory approvals.
Golden operates roughly 10,500 slot machines at more than 1,000 non-casino locations in Nevada and Montana. In March, the company had entered into definitive agreements to sell its slot machine business in the two states to Illinois-based private company J&J Ventures Gaming for cash consideration of $322.5 million, plus $39 million of estimated purchased cash at closing.
As per earlier reports, Golden will enter into a five-year agreement with J&J Gaming to support the gaming operations of its branded tavern locations in Nevada "at financial terms consistent with the company’s past practice."
“Our values and commitment to service align perfectly with Golden Entertainment’s and the distributed gaming business it built in Montana. We welcome all Montana employees and customers with great honor, and we look forward to a promising future and the continued opportunities that this acquisition will bring,” J&J Ventures Gaming CEO Bob Willenborg said.
Today, J&J Ventures is one of the largest terminal operators in Illinois, Pennsylvania, and Montana with plans to operate in Nevada. As per the report, J&J Ventures, majority-owned by funds managed by Oaktree Capital Management, is now with this deal also one of the main terminal operators in Montana.
The sale allows Golden Entertainment to concentrate its efforts on its portfolio of eight casinos located in Southern Nevada including The STRAT Hotel, Casino & SkyPod as well as its network of 65 gaming taverns operated under the PT’s, Sierra Gold and other brands across the state of Nevada.