Golden to divest distributed gaming operations in Nevada, Montana for $322.5M

Golden Entertainment announced that it entered into definitive agreements to divest its distributed gaming operations in Nevada and Montana for aggregate cash consideration of $322.5M, plus $39M of estimated purchased cash at closing. Pursuant to the terms of the agreements, J&J Ventures Gaming, will acquire Golden’s Distributed Gaming Operations in Nevada for $213.5M plus an estimated $34M of purchased cash and Golden’s Distributed Gaming Operations in Montana for $109M plus an estimated $5M of purchased cash, subject to customary working capital adjustments. In addition, Golden will enter into a five-year agreement with J&J Gaming under which J&J Gaming will support the gaming operations of Golden’s branded tavern locations in Nevada at financial terms consistent with the company’s past practice. The aggregate cash consideration plus purchased cash represents a multiple of approximately 9.0x of the adjusted EBITDA for Golden’s Distributed Gaming segment for the year ended December 31, 2022 of $44M, net of $3.8M of corporate costs allocated to the company’s distributed gaming segment. Established almost 100 years ago, J&J Gaming is a privately held business and the leading distributed gaming operator in Illinois, with related operations in several other states. The transactions are expected to close prior to year end, subject to customary regulatory approvals and closing conditions. Latham & Watkins LLP is acting as legal counsel to Golden in connection with the transactions.