BETTENDORF, Iowa -- Isle of Capri Casinos Inc is being bought by rival company Eldorado Resorts for $1.7 billion.
Eldorado Resorts announced on Monday, September 19, 2016 that they reached a merger agreement with Isle. As part of the $1.7 billion, Eldorado will be taking on $929 million of the Isle's long-term debt.
With this merge, Eldorado will have 20 properties across the country, 13 of those coming from the Isle purchase.
Chairman and CEO of Eldorado, Gary Carano, said that the company is working to grow across the region and have "created tremendous value" for shareholders over the last two years. He said that Eldorado and Isle will be beneficial to both companies.
"Strategically, the combination builds the scale of our gaming operations and further diversifies the geographic reach of our operations without any overlap with our existing properties," said Carano.
“We are pleased to reach this agreement with Eldorado Resorts, which provides Isle of Capri shareholders with substantial and immediate value, as well as the opportunity to participate in the upside potential of the combined company," said Isle CEO Eric Hausler. "The premium value our shareholders will be receiving reflects the culmination of several years of hard work by many dedicated Isle of Capri employees and the determination and guidance of our Board of Directors in creating and driving value. I am thankful for the hard work and dedication of our talented employees, and I am confident they will continue to make many valuable contributions as part of a larger and stronger organization."
The Isle will get 1.638 shares of Eldorado common stock, worth $23 per share.