Century Gaming is expanding its presence in the Reno gaming market with the acquisition of the Nugget Casino Resort for $195 million.
The Colorado-based gaming corporation reached an agreement with Marnell Gaming to acquire a 50% stake in Smooth Bourbon LLC, the owner of the resort’s land, and a 100% stake in Nugget Sparks LLC, the resort’s operator. The total purchase price for these transactions is $195 million.
The financial details of the agreement include a $95 million payment for Smooth Bourbon and a $100 million payment for Nugget Sparks. Notably, Century Gaming will lease the property from Nugget Sparks for an annual fee of $15 million. However, Century Gaming retains the right to purchase the remaining 50% of Smooth Bourbon within a five-year timeframe for $105 million, plus accrued interest.
Goldman Sachs is providing financial support for this transaction through a $330 million loan. This funding will cover the acquisition costs, refinance existing Century Gaming debt, and provide additional capital for general corporate purposes.
Located in Sparks, Nevada, just a short distance from Reno, known as “The Biggest Little City in the World,” the Nugget is a prominent landmark.
The resort features a 50,200 square-foot casino floor with a wide array of slot machines and table games. Additionally, it offers over 1,300 hotel rooms and seven dining establishments, making it a popular entertainment destination.
Erwin Haitzmann and Peter Hoetzinger, co-CEOs of Century Gaming, expressed their enthusiasm for the acquisition. They have been interested in expanding into the Reno market for some time and believe that the Nugget aligns perfectly with their company’s strategic goals. They are also eager to welcome the Nugget’s employees into the Century Gaming organization.
Were genuinely thrilled about this business deal. Integrating Nugget into our company will be a resounding success, and we envision incredible prospects to support their already impressive expansion.
We firmly believe that Nugget will seamlessly complement our current portfolio in the United States, and we’re eager to collaborate and generate even greater success together.