Rhode Island-based casino operator Twin River Holdings announced it entered into an agreement with Delaware North Companies Gaming & Entertainment for the acquisition of Jumer’s Casino & Hotel in Rock Island, Illinois. According to the investor release Thursday, the agreed price for the deal is $120 million.
Twin River Continues on Its Expansion Strategy
“Even in the current operating environment amid COVID-19, we advance our disciplined portfolio diversification strategy as we continue to opportunistically expand our regional presence through accretive transactions.”George Papanier, President and CEO, Twin River Holdings
The Jumer’s casino property will add to the list of newly acquired casinos by the company which is still in the process of completing deals for other gaming venues, the purchase of Bally’s Atlantic City for $25 million, and the combined deal for Eldorado Shreveport in Shreveport, Louisiana and MontBleu Resort Casino in Lake Tahoe, Nevada, for $155 million.
“This acquisition further expands our geographic reach into yet another attractive market. It provides access to a growing gaming market in Illinois, with the potential to capitalize on potentially lucrative sports betting opportunities. We look forward to the opportunity to leverage our operational expertise and proven integration approach to drive incremental revenues and cash flow improvements.”George Papanier, President and CEO, Twin River Holdings
In July, Twin River completed another combined casino property acquisition from former Eldorado Resorts, Lady Luck Vicksburg in Mississippi and Isle of Capri in Kansas City, Missouri, for $230 million, as Eldorado had to divest properties ahead of the completion of its merger with Caesars.
Jumer’s Presents Undeveloped Potential
The Jumer’s casino property acquisition is expected to complete during the second quarter of 2021, subject to approval from regulators and other closing conditions, as well as customary working capital adjustments. With its completion, Twin River will operate 13 casino properties across 9 states.
“Over the last several years through our efforts with Hard Rock Biloxi, Dover Downs, our Black Hawk Colorado Casinos and most recently Casino KC and Casino Vicksburg, we have demonstrated an ability to integrate and operate acquired casino assets. We believe this experience will prove valuable as we look to further enhance Jumer’s financial performance. In particular, we believe there is an opportunity to improve operations and enhance revenues at the property which would allow us to lower our acquisition multiple.”George Papanier, President and CEO, Twin River Holdings
The latest acquisition for Twin River is located in the Quad Cities in Rock Island, Illinois and comprises of a 40,000 square foot casino, featuring in excess of 870 slot machines and 25 table games. Besides the casino, the property offers a hotel with 205 rooms and 11 luxury suites, an event center, 4 restaurants, a night club, Edje, and the Oculus Sports Bar.