Icahn's company strikes approximately $1.85B Tropicana dealApril 16, 2018 5:15pm

ATLANTIC CITY, N.J. (AP) — Carl Icahn's company struck an approximately $1.85 billion deal Monday that would fuse the gambling and hotel operations of Tropicana Entertainment to Eldorado Resorts Inc.

The agreement includes the sale of Tropicana Entertainment Inc.'s real estate to Gaming and Leisure Properties Inc. It doesn't include Tropicana's Aruba assets, which will be disposed of as a condition to closing.

Icahn Enterprises initially bought a stake in Tropicana in 2008. The Las Vegas company currently owns and runs eight casinos and resorts.

Eldorado Resorts is acquiring the operating assets of seven casinos in six states, including two in Nevada — the Tropicana Laughlin Hotel and Casino and the MontBleu Casino Resort & Spa in South Lake Tahoe — as well as casinos in Indiana (Tropicana Evansville); Louisiana (Belle of Baton Rouge Casino & Hotel); Mississippi (Trop Casino Greenville); Missouri (Lumière Place); and New Jersey (Tropicana Casino and Resort, Atlantic City).

These properties include approximately 7,900 slot machines, 265 table games and 5,400 hotel rooms plus dining, retail and entertainment amenities. Upon completion of all pending transactions, Eldorado's property portfolio will feature about 26,800 slot machines and VLTs, more than 800 table games and over 12,500 hotel rooms.

"The acquisition of seven Tropicana Entertainment properties will allow Eldorado to enter two new gaming jurisdictions and deliver additional financial and geographic diversity to our operating base," said company chairman and CEO Gary Carano.

Icahn said that when he acquired an interest in Tropicana in 2008, it was bankrupt yet undervalued. "By hiring a great CEO in Tony Rodio and a great management team, and by reinvesting every single penny of profits back into the company, we turned Tropicana into a great casino company."

The deal is targeted to close during the second half of the year.

Eldorado said the Tropicana properties are in excellent shape, and does not anticipate needing to invest significant money into them. It said the Aruba property was not included in the sale because Eldorado does not believe it would be worth acquiring.

The company said it enters the Atlantic City market realizing it is about to expand with the re-opening of two shuttered casinos that will increase the amount of properties to nine, but feels it can operate the Tropicana Atlantic City profitably. That casino recently became the No. 2 casino in Atlantic City in terms of gambling revenue, trailing only the Borgata.

Eldorado also announced Monday it is buying the Grand Victoria Casino in Elgin, Illinois from MGM Resorts International for $327.5 million in cash.

In Atlantic City, Icahn still owns the shuttered former Trump Plaza Hotel and Casino, which shut down in 2014.


Follow Wayne Parry at http://twitter.com/WayneParryAC

Page 1 of 1

More Stories Like This

Atlantic City's Hard Rock casino sets June 28 opening dateAtlantic City's Hard Rock casino resort announces June 28 opening date
This undated photo, shows a large mound behind a motel in Franklin Township, Pa., that contains the Rhodes family cemetery. A group is suing the owners of a motel who started an excavation project in Pennsylvania that left their family cemetery a large mound of earth more than 25 feet high. The Observer-Reporter reports descendants of people buried in Rhodes Cemetery filed their lawsuit against Nikita Lodging Inc. April 4, 2018, saying they want the company to stabilize the cemetery, allow access to the area and restore the cemetery to its original condition.  (Bob Niedbala/Observer-Reporter via AP)
Lawsuit filed over cemetery left as giant mound of earth
FILE- In this Feb. 23, 2018, file photo, customers enter a Bon-Ton store, which is scheduled to close, in Concord, N.H. Two liquidation firms are the victors of an auction for The Bon-Ton Stores company's assets, after the retailer failed to find a bidder willing to continue operating the business. A bankruptcy court hearing is scheduled for Wednesday, April 18, to approve the sale and liquidation details. (AP Photo/Charles Krupa, File)
Liquidation firms win bid for The Bon-Ton Stores
Tradeoff: No cash but faster lines as restaurants forgo cashA small but growing number of restaurants are cashless, telling customers they can pay by credit or debit cards or smartphones, but not bills or coins
AP Explains: For Americans, big changes in travel to CubaAP Explains: Raul Castro's time in office has seen dramatic changes in Americans' ability to travel to Cuba, with a dramatic opening under President Barack Obama, then a partial reduction under President Donald Trump
Economic changes in Cuba under President Raul CastroA look at the gradual but significant changes that President Raul Castro brought to Cuba in his 12 years as head of state
This component is currently unavailable.

Related Searches

Related Searches