RISING SUN, INDIANA Full House Resorts has agreed to acquire the operating assets of Grand Victoria Casino & Resort in Rising Sun, Indiana.
The purchase price is US$43 million, exclusive of estimated cash and net working capital balances of US$8 million and fees and expenses as of the closing date.
Las Vegas-based Full House anticipates applying approximately US$20 million of cash on hand to the purchase price and funding the balance with debt financing. Closing is expected in the first quarter of 2011.
The riverboat casino has 40,000 sq. ft. of gaming space. The property includes a 201-key hotel with spa, pool, meeting space and a pavilion with five food and beverage outlets, including a fine-dining restaurant, buffet, sports bar, quick service restaurant and coffee shop and a large, multi-purpose Grand Theater for concerts and performance events as well as meetings and conventions. The 300-acre grounds also contain an 18-hole Scottish links golf course with full-service clubhouse.
“This property is perfectly sized to complement our current business and we believe the transaction will create long-term shareholder value,” says Andre M. Hilliou, chairman and CEO of Full House. “Under the leadership of HGMI Gaming Inc., the property is well-run and well-maintained. The current property management is very strong; however, we believe that we can leverage our knowledge and proven track record of managing properties catering to local customers in competitive environments to further improve the profitability of the Grand Victoria, and we expect to see immediate returns on our investment.”