Gaming company Eldorado Resorts said Monday it plans to acquire rival Isle of Capri Casinos for US$1.7 billion, including debt. Following the deal, Nevada-based Eldorado will add 13 casino resorts and over 6,500 hotel rooms.
Isle of Capri will receive 1.638 shares of Eldorado common stock, or $23 per share, which represents a premium of 35.9% to Isle of Capri’s Friday closing price. The deal includes Isle of Capri’s $929 million of long-term debt.
Eldorado has received US$2.1 billion financing for the deal from financial adviser J.P. Morgan.
“The combination builds the scale of our gaming operations and further diversifies the geographic reach of our operations without any overlap with our existing properties,” said Eldorado Resorts Chief Executive Gary Carano.