Several casino elements

Jack Cincinnati casino acquired by Hard Rock

Several casino elementsWhen it comes to major acquisitions, very few get as big and as high staked as casino ventures. Casinos are not only spinners of gold for players who enjoy their gameplay and services, but these entities are also worth a whole lot too in terms of ROI. This is why when it comes to mergers and acquisitions of these lucrative ventures, that the values and amounts sit in the hundreds of millions. The acquisition of Jack Cincinnati Casino by VICI Properties and subsidiary company Hard Rock International ranks in the same league. In fact, this massive acquisition is just a few hundred million dollars short of a billion. Jack Cincinnati Casino opened its doors back in March of 2013 and is located on a massive bed of 22 acres in the Ohioan city of Cincinnati. The acquisition comes as little of a surprise given the current boom in the gambling market of Ohio.

Weighing of the cons, but mostly the Pros

The ultimate rationale behind the decision to acquire Jack Cincinnati was made after a portfolio analysis of the organization’s stakes. This of course included assets, company goodwill and financial reports and profitability. The casino’s portfolio is also decked with a 100,000 square meters of gambling space with about 100 table games and 1,800 other gambling machines. In addition to this, the land has 33,000 square meters of conference facilities including meeting rooms, offices and boardrooms. The property also includes two bars and six high-end restaurants.

Jack Entertainment’s CEO, Matt Cullen, pointed out that his organization viewed the gambling market as a mechanism for economic growth within local districts. He went on to further explain that the hundreds of millions of dollars poured into Jack Cincinnati over the last decade was not in vain and instead has positioned the brand for even bigger and better future successes.

One such future success strategy is the acquisition of the brand by bigger players who can further execute these growth strategies and ambitions. He further went on to proclaim his confidence within Hard Rock and its world-renowned marker to take Jack Cincinnati to new heights and to the next level of evolution.

CEO of Hard Rock International, Jim Allen, seems to share the exact same sentiments, expressing his company’s reasoning for acquiring the Cincinnati based brand. He exclaimed that his company is looking forward to introducing their own unique marker of casino recreation to the Cincinnati market.

It’s not in the cards, but rather in the money

So, what exactly are the numbers being brought to the table for this acquisition? The transaction, which is set to be fully finalized in the latter half of 2019 is worth a whopping $745 million. The agreement made with governing company of Jack Entertainment LLC will see a 100% acquisition of all membership interests of its subsidiary organization Jack Cincinnati.

As of the time of writing, the transaction consists of a two-way acquisition.This will see Hard Rock acquiring the casino’s operational assets at a $187 million cost while VICI Properties will acquire 100% of membership interest as well as the land and real estate of the casino, this acquisition will set VICI $558 million back. Furthermore, Hard Rock will enter into a lease agreement with VICI Properties in order to continue to use the facilities and features of the casino.

The lease will be triple-net and has an upfront rental cost of $42.75 million with a start off rental term of 15 years. To say that this is one of the biggest acquisitions is the casino sphere is an understatement. With legal aid being provided for by Kramer Levin Naftalis & Frankel LLP and financial advice from Goldman Sachs & Co, the stakes are clearly high.

If you now want to enjoy a great gambling experience, have a look at this site.