Golden Entertainment acquires small slot route operator for $20 million
Las Vegas-based Golden Entertainment spent $20 million Tuesday to acquire a small slot machine route operator that manages 1,000 slot machines in bars, taverns and convenience stores.
In a statement, Golden did not name the company nor would it give the company's location, per the purchase agreement. A Golden investor relations representative said more detail on the deal would be announced when the transaction closes.
Golden will enter into an agreement to continue the slot route's operations.
Golden said the purchase would "immediately" add to earnings. In addition, the seller would also receive 50,000 shares of Golden's stock. The company said it was funding the deal through cash and its line of credit.
Golden Entertainment is Nevada's largest slot machine route operator, managing more than 7,600 slot machines in 670 statewide locations. Golden operates 46 taverns in Nevada through the PT's, Sierra Gold and Sean Patrick's brands. The company recently announced it will add four more locations in Las Vegas next year, including the its first micro-brewery.
Golden, which was created through a $341 million merger with Lakes Entertainment, is 35 percent owned by the Sartini family.
Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871. Find @howardstutz on Twitter.
