Colorado-based Century Casinos announced that it has entered into an agreement to acquire 50% of Smooth Bourbon and 100% of Nugget Sparks (Nugget Casino Resort) from Marnell Gaming for $195 million.
Century will also have a five-year option to purchase the remaining 50% of PropCo for $105 million, according to the announcement.
The company will purchase its 50% interest in PropCo for $95 million. PropCo owns the land and building underlying the Nugget and will enter into a lease of the property to OpCo for an annual rent of $15 million.
Following required approvals from the Nevada Gaming Commission, the Company will purchase 100% of OpCo for $100 million.
“We have been looking at entering the Reno market for a long time, and we believe the Nugget is a perfect fit for our portfolio. We look forward to welcoming the great team at the Nugget to Century Casinos,” Erwin Haitzmann and Peter Hoetzinger, co-CEOs of Century Casinos said in a statement.
“We believe there is a lot of upside to this transaction and that we identified some areas of improvement to continue the Nugget’s growth. We expect the Nugget to seamlessly integrate and provide added synergies for Century Casinos’ US portfolio,” they added.
Nugget Casino Resort is located in Sparks, Nevada on Interstate 80. The casino, which opened back in 1955, has 50,200 square feet of casino space, 859 slot machines, 29 table games, along with about 1,400 hotel rooms. The Nugget Casino Resort had net operating revenue of $100.4 million the year ended December 31, 2021.
Upon closing of the Nugget Casino Resort acquisition, the Century Casinos’ North American portfolio will increase to 10 casinos.
The PropCo transaction and the financing are expected to close early in the second quarter of 2022. The OpCo acquisition is expected to close within one year after the PropCo transaction, subject to required approvals of the Nevada Gaming Commission.