Affinity Gaming Company of Nevada is set to be purchased by Z Capital Partners a New York based firm.
Z Capital Partners LLC is a private equity managing group based in New York who has plans to acquire Affinity Gaming, a casino operator based in the state of Nevada. Z Capital will be spending $580 million to acquire the company, which owns several gaming properties across the United States.
Z Capital Partners is a division of the alternative investment manager Z Capital Group. Z Capital and their affiliates actually already own 41% of Affinity Gaming stakes. After the announcement yesterday that Z Capital will be taking over, it was found that the outstanding shares would be sold at a price of $17.35 per share. Z Capital plans on paying cash and has already been given a debt financing commitment from Citizens Bank for $465 million.
First Proposal by Z Capital
Affinity Gaming was first approached by Z Capital with a non-binding proposal offering $15 per share from Z Capital. A committee of special independent directors was formed by Affinity Gaming to examine the potential transaction along with any other bids from groups interested in acquiring the company. This was done under the advisement of the Board of Directors of Affinity Gaming.
The offer was then increased to $17.35 per share, which took place earlier this month, and the special committee was able to determine that this deal would be beneficial to the company. The committee told the Board so and the Board decided to approve the proposal.
Both Companies Happy With the Decision
Z Capital and Affinity Gaming are both happy with the recent decision, with Chairman of the Board of Affinity Gaming, David Reganato, stated that the agreement with Z Capital will bring about significant value to the shareholders of the company and that the decision was made after comprehensive consideration of the offer by Z Capital. Reganato is also the chairman of the specialty appointed committee.
Z Capital President and CEO, James Zenni, commented that his company is pleased to be purchasing the gaming company and be the single controlling shareholder. Zenni stated further that the gambling company provides consumers with quality entertainment options that are affordable and is in operation in many attractive markets within the United States. Zenni also holds a position on the Board of Directors for Z Capital.
As the new owner, Z Capital will work to help Affinity Gaming to continue their expansion efforts and drive further profitability to the company with key operational improvements as well as enhanced efficiencies.
Affinity Gaming operates 11 casinos in the United States and is headquartered in Las Vegas. Five of the venues are located in Nevada with additional properties in Colorado, Missouri and Iowa. The Nevada properties offer online slot game play via mobile device, both Apple and Android. A-Play Connect lets players enjoy slot gaming, redeem for special prizes and take part in digital casino game play.
Now that Z Capital is taking over, it will be interesting to see if one area of improvement will be with online game play. The state of Nevada provides the ability for operators of land based venues to offer online poker gaming. Casinos must partner with an online operator and gain licensing approval before being allowed to go ahead with such gaming options. Will Z Capital focus efforts for online poker game play? Or perhaps the brand will look to online casino gaming if legislation is ever passed to offer such options.
For now, the company is focused on taking over total control of Affinity Gaming and looking towards the future in a variety of areas.