Morgans acquires controlling interest in The Light Group for $46.5M

18 Nov, 2011

Morgans Hotel Group acquired a 90-percent controlling interest in the Las Vegas-based nightclub operator The Light Group. The Las Vegas Review-Journal reports the acquisition price at $46.5 million.

The Light Group currently operates many nightclub and restaurant operations on the Las Vegas Strip owned by MGM Resorts International.

Gross said in a statement: "This transaction fulfills our strategic goal of having industry-leading F&B capabilities in-house. Combined with the recent improvements in our balance sheet and strong expansion pipeline, this is an important step in establishing the fundamentals we need to execute our vision and extend our position as a leader in global lifestyle hospitality management. The Light Group's existing business brings with it management agreements generating approximately $8 million of annual EBITDA, making this transaction immediately accretive to our EBITDA. Given The Light Group's strong relationship with MGM, this transaction provides new opportunities to work with MGM on strategic partnerships."

Topic : Morgans, F&B
External Source : Las Vegas Review-Journal, Morgans Hotel Group

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