Virginia gamers may find interesting the news that the parent company of Mountaineer Casino, Racetrack and Resort has agreed to a merger with Eldorado Resorts. The transaction between Eldorado Resorts and MTR Gaming Group is the latest of the seemingly continual mergers and acquisitions in the gaming industry. The merger is expected to close in mid-2014, with the current head of Eldorado becoming the chief executive officer of the new combined company. The deal will have to meet regulatory and closing conditions and be approved by shareholders.
The combined company will be responsible for the operation of six properties in five different jurisdictions. The properties would sport 283 table games, 9,968 slot machines and video lottery terminals, and 3,282 hotel rooms. The pro forma enterprise value of the new company would be approximately $1 billion, based on a transaction value of $5.15 per share.
MTR is the owner and operator of Presque Isle Downs & Casino in Pennsylvania in addition to the Mountaineer properties. Eldorado Resorts operates a variety of properties in Nevada and Louisiana including Eldorado Shreveport, Eldorado Reno and Silver Legacy, a joint venture with MGM Resorts International.
It isn't just the gaming industry that is seeing companies partnering to meet bigger business goals. In Virginia, mergers and acquisitions are taking place frequently as companies look to expand into new markets. An attorney experienced in mergers and acquisitions may be able to assist clients who are considering business expansion and combinations. Such an attorney may be able to provide advice and counsel regarding applicable regulatory requirements, and may be able to help in the preparation of acquisition and similar documents that may be required as a result of the proposed transaction.
Source: State Journal , "Mountaineer Casino, Racetrack and Resort part of merger agreement", Jim Workman, September 10, 2013