Golden Entertainment agrees to negotiate with J&J Gaming

Golden Entertainment, Inc. has agreed to sell its Nevada and Montana gaming operations to an Illinois-based company.

The transaction provides for cash consideration totaling $322.5 million plus $39 million in purchased cash at closing.

J&J Ventures Gaming, GMBH will acquire Golden’s distributed gaming operations in Nevada for $213.5 million plus an estimated $34 million in purchased cash and Golden’s distributed gaming operations in Montana for $109 million plus an estimated $5 million in purchased cash.

In addition, Golden will enter into a five-year agreement with J&J Gaming under which J&J Gaming will support the gaming operations of Golden’s branded tavern locations in Nevada “on financial terms consistent with the Company’s historical practice.”

“Our premier distributed gaming operations in Nevada and Montana have been built over the past 20 years through the hard work and dedication of our team members who provide exceptional service and support to our valued route partners,” said Blake Sartini, Golden’s chairman and chief executive officer.

“We believe this transaction will bring continued success to our route partners through the sharing of best practices and new technologies. We anticipate that members of our Distributed Gaming team will continue to serve our circuit partners with the same dedication under J&J Gaming ownership. Our confidence in the future success of J&J Gaming is underscored by our new long-term agreement with J&J Gaming to oversee Golden’s wholly owned Tavern portfolio. For Golden, these transactions will allow us to focus our management team and capital on our portfolio of wholly owned Nevada casinos and taverns and create additional value for our shareholders.”

Privately held J&J Gaming is one of the largest terminal operators in Illinois and Pennsylvania. J&J Amusements is a leading operator of non-gaming equipment such as dart machines, pool tables, jukeboxes, ATMs and other amusement devices.

The transactions are expected to close before the end of the year, subject to customary regulatory approvals and closing conditions.