Golden Entertainment is selling the Rocky Gap Casino Resort in Flintstone, Md., for aggregate cash consideration of $260 million. Pursuant to the terms of the agreements, Century Casinos will acquire the operations of Rocky Gap for $56.1 million, subject to customary working capital adjustments, and VICI Properties will acquire an interest in the land and buildings associated with Rocky Gap for $203.9 million.
The aggregate cash consideration represents a multiple of approximately 10x adjusted property earnings before interest, taxes, depreciation or amortization for the trailing twelve-month period ended June 30. The transaction is expected to close in mid-2023, subject to customary regulatory approvals and closing conditions.
“Rocky Gap is a truly unique destination resort and I want to thank all of our team members who work hard to consistently deliver a premier gaming and entertainment experience to our guests," Golden Entertainment Chairman and CEO Blake Sartini said in a statement. "Since Golden began operating Rocky Gap seven years ago, we have invested our resources to enhance the property’s amenities and our contributions to the State of Maryland. We are confident that Century Casinos will be a terrific operator of Rocky Gap and strong partner to the community going forward. Strategically, this transaction will enable Golden to focus on the continued success of our operations in core markets. The sale price represents an attractive, premium multiple relative to our current valuation and will provide additional financial flexibility for us to create shareholder value.”
Macquarie Capital is acting as exclusive financial advisor and Latham & Watkins is acting as legal counsel to Golden in connection with the transaction.