Twin River Buys 3 Casinos for $180 Million From Eldorado, Caesars

Other casino companies are expected to join Twin River as buyers, with the industry seen consolidating.
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Shares of casino owner Twin River Worldwide Holdings  (TRWH) - Get Report soared Friday after it announced agreements to acquire three casinos for a total of $180 million.

The company announced a deal to purchase Eldorado Resorts’  (ERI) - Get Report Eldorado Shreveport Resort and Casino in Shreveport, Louisiana, and its Mont Bleu Resort Casino & Spa in Lake Tahoe, Nevada, for an aggregate price of $155 million.

Twin River also agreed to buy Bally’s Atlantic City Hotel & Casino from Caesars Entertainment  (CZR) - Get Report and Vici Properties  (VICI) - Get Report for $25 million in cash.

The three properties combined contain 3,318 slots, 2,092 hotel rooms and 176 tables, in addition to 6,000 square feet of convention space at the Eldorado Shreveport Resort and Casino.

Eldorado last June announced a plan to acquire bigger rival Caesars.

The coronavirus pandemic has hammered casinos. Almost all of them are closed as non-essential businesses, and would-be gamblers are stuck at home.

Analysts and investors have predicted that the industry will undergo intense consolidation, with the biggest players likely coming out the winners. Twin River isn’t one of those. It has a market capitalization of $390 million, according to Yahoo Finance.

“These acquisitions represent a unique opportunity to continue executing on our expansion and diversification strategy at attractive valuation multiples,” Twin River CEO George Papanier said in a statement.

“We see significant opportunities to create cross marketing connections for customers at multiple Twin River locations, and we look forward to applying our proven operating and integration approach to drive incremental revenues and cash flows,” he added.

Twin River shares recently traded at $13.29, up 14.87%. The stock has plummeted 50% over the past three months, even including Friday’s gain.