Twin River Worldwide to Buy Casino Resort for $120M
- Oct 02, 2020
Twin River Worldwide Holdings Inc. makes another move to increase its footprint, striking a new deal to acquire Jumer’s Casino & Hotel in Rock Island, Ill., from Delaware North Companies Gaming & Entertainment Inc. The $120 million, all-cash purchase will mark the company’s entrée into the state of Illinois.
“This acquisition represents a unique opportunity to continue executing on our geographic expansion and diversification strategy at an attractive multiple by entering another important market,” George Papanier, president & CEO of Twin River Worldwide Holdings, Inc., told Commercial Property Executive. Located in the Quad Cities region, which encompasses a handful of cities in western Illinois and eastern Iowa, Jumer’s last changed hands in 2011, when Delaware North acquired the asset for $180 million.
Jumer’s opened its doors at 777 Jumer Drive in 2008. The property features 40,000 square feet of gaming space and a 205-key hotel, as well as an events center, sports bar, nightclub and four restaurants. “Jumer’s is consistent with the type of high-quality properties that we are interested in and will allow us to diversify our current portfolio while broadening offerings to customers,” Papanier said. “This move also positions the Company to capitalize on lucrative sports betting opportunities in Illinois, while we believe there is an opportunity to improve operations and enhance revenues at the property.” Twin River plans to finance the acquisition of Jumer’s with cash on hand, cash from ongoing operations and borrowings under its revolving credit facility.
Twin River currently owns nine casinos in Rhode Island, Mississippi, Delaware, Missouri and Colorado, but the company’s portfolio is undergoing a growth spurt. In April 2020, Twin River entered into an agreement with Eldorado Resorts Inc. to acquire Eldorado Shreveport Resort and Casino in Shreveport, La., and the Mont Bleu Resort Casino & Spa in Lake Tahoe, Nev., for an aggregate $155 million, and signed a deal with Caesars Entertainment Corp. and Vici Properties to purchase Bally’s Atlantic City Hotel & Casino in Atlantic City, N.J., for $25 million in cash. As many investors continue to sit on the sidelines amid pandemic-related uncertainty, Twin River remains in active acquisition mode.
“While no one could have predicted the unprecedented impact of the COVID-19 pandemic, we were well positioned when it happened, as we have continuously taken proactive steps to ensure that we are well prepared for an event like this, financially speaking,” Papanier noted. “We have always preferred to operate with lower leverage and high levels of liquidity so that we can remain flexible to consider M&A opportunities such as [Jumer’s] that are accretive to shareholders and the right fit for our expanding portfolio of properties.” Twin River expects the Jumer’s transaction to close during the second quarter of 2021.