After entering into a $120 m agreement with Delaware North Companies Gaming & Entertainment, Twin River Worldwide Holdings is to add Jumer’s Casino & Hotel in Rock Island, Illinois, to its roster of properties.
Jumer’s features a 40,000 square foot casino floor with over 870 slot machines and 25 table games, a 205 bed hotel with 11 luxury suites, an events centre, an Oculus Sports Bar, a nightclub in Edje and four restaurants.
It is estimated that the transaction will close during the second quarter of 2021, subject to the requisite regulatory approvals and other customary closing conditions being issued.
Upon completion, Twin River will run 13 properties in nine states, taking into account three additional properties currently under contract.
George Papanier, Twin River’s president and CEO, commented: “Over the last several years through our efforts with Hard Rock Biloxi, Dover Downs, our Black Hawk Colorado Casinos and most recently Casino KC and Casino Vicksburg, we have demonstrated an ability to integrate and operate acquired casino assets.
“We believe this experience will prove valuable as we look to further enhance Jumer’s financial performance. In particular, we believe there is an opportunity to improve operations and enhance revenues at the property which would allow us to lower our acquisition multiple.”
Based on Jumer’s adjusted EBITDA for the year ended December 31 , 2019, it is anticipated that the transaction would raise earnings immediately. The company plans to fund the purchase price under its revolving credit facility with a mix of cash on hand, cash from continuing operations, and borrowings.
Papanier added: “Even in the current operating environment amid COVID-19, we advance our disciplined portfolio diversification strategy as we continue to opportunistically expand our regional presence through accretive transactions.
“This acquisition further expands our geographic reach into yet another attractive market. It provides access to a growing gaming market in Illinois, with the potential to capitalise on potentially lucrative sports betting opportunities.
“We look forward to the opportunity to leverage our operational expertise and proven integration approach to drive incremental revenues and cash flow improvements.”