The Isle of Capri Casinos Inc. Sell its Westlake Property to New Mexico Developer Affiliate Laguna Development Corp for $134.5 Million
The Isle of Capri owners have made an agreement deal with an affiliate of Laguna Development Corporation, a business in Albuquerque, New Mexico for $134.5 million. This amount represents the adjusted EBITDA about 7.8x. The agreement amount is also subject to a customary working capital adjustment. The sale is awaiting approval from by the Louisiana Gaming Control Board.
Kicks Entertainment, the company that purchased the property plans on improving the site with new slot machines, new decor and more food and beverage options.
Eric Hausler, the CEO of Isle of Capri Casinos commented,
“This transaction provides us with an opportunity to unlock significant value for our shareholders. On a pro forma basis, we expect the transaction to increase Adjusted EBITDA margins, while further deleveraging our balance sheet. Following the completion of the sale, we intend to use the cash proceeds we receive from this transaction to reduce debt and for other corporate purposes.”
LDC spokesman Skip Sayre reassured that their interest is to keep the customers happy with more options as far as growing their products and services. The new owners are also retaining the 1,000 current employees.