Maverick Casinos to acquire Nevada Gold in all-stock transaction

September 18, 2018 6:12 PM
  • Howard Stutz, CDC Gaming Reports
September 18, 2018 6:12 PM
  • Howard Stutz, CDC Gaming Reports

Nevada-based Maverick Casinos announced Tuesday it would acquire Nevada Gold & Casinos in an all stock deal, giving the privately-held company nine casinos in the state of Washington. A small casino in Henderson, Nevada is being sold separately.

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Maverick will acquire all outstanding shares of Nevada Gold for $2.50 a share. The transaction is subject to approval of Nevada Gold shareholders and will also require regulatory approval. Nevada Gold’s board of directors approved the transaction

The company had been for sale for several years.

Eric Persson is the manager of Maverick. An affiliate of the company owns the Wendover Nugget Hotel & Casino and Red Garter Hotel & Casino in Wendover, Nevada, along with various other assets.

In addition to the Washington casinos, Nevada Gold owns Club Fortune in Henderson, which is under contract to be sold to Truckee Gaming.

“Our goal was to obtain the highest value in a sale of the company,” William Sherlock, chairman of Nevada Gold, said in a statement. “We believe the transaction announced today achieves our objective and provides immediate cash consideration for our shareholders.”

Maverick intends to fund the transaction primarily with debt financing from Nevada State Bank plus equity financing from Maverick.  The transaction is not subject to a financing condition.

The deal is expected to close by the end of the year.