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Eldorado Resorts to Acquire Caesars in $8B+ Deal
Eldorado Resorts Inc. agreed to buy Caesars Entertainment Corp. for approximately $8.58 billion in cash and stock. The move would create the largest U.S. casino operator by property count.
The deal would combine all of Caesars’ Las Vegas properties, including Caesars Palace and Harrah’s, with Eldorado’s mostly southern and midwestern locations. The combined entity would own and operate 60 casinos in 16 states. Eldorado will acquire all of the outstanding shares of Caesars for a total value of $12.75 per share, a 29% premium to their closing price on June 21. Eldorado management will lead the combined company, which will retain the Caesars name. The company’s main operations will be based in Reno. In 2018, Caesars recorded $8.39 billion revenue while Eldorado had $2.06 billion in revenue.
Also as part of the transaction, VICI Properties has entered into an agreement with Eldorado to acquire the land and real estate assets associated with Harrah’s New Orleans, Harrah’s Laughlin, and Harrah’s Atlantic City for a purchase price of approximately $1.8 billion. VICI will also be granted rights of first refusal for whole asset sale or sale-leaseback transactions on two Las Vegas Strip properties, and a right of first refusal for a sale-leaseback transaction on Horseshoe Casino Baltimore.
For comments, questions or concerns, please contact David Cohen
- ◦Sale/Acquisition
