New York-based private equity manager Z Capital Partners LLC will purchase Nevada-headquartered casino operator Affinity Gaming for the approximate amount of $580 million, the two parties announced in a Tuesday statement.
Z Capital Partners is known to be the private equity management division of alternative investment manager Z Capital Group. Z Capital and its affiliates currently own a 41% stake in Affinity Gaming. Following the latest announcement, it will purchase the operator’s remaining outstanding shares at a price of $17.35 per share. Z Capital said on Tuesday that it will pay in cash and that it has been granted a $465-million debt financing commitment from Citizens Bank, N.A. for the purpose.
After receiving a non-binding proposal of $15 per share from Z Capital, a special independent directors committee was formed by Affinity Gaming with the purpose of examining the potential transaction as well as bids from other interested parties and to advice the gambling operator’s Board of Directors.
As revealed in yesterday’s statement, Z Capital increased its offer to $17.35 per share earlier this month. The special committee eventually concluded that an acquisition deal with Z Capital was one that would benefit Affinity Gaming and advised the Board to approve the proposal.
Commenting on the latest announcement, David Reganato, Chairman of Affinity Gaming’s Board and specially appointed committee, said that the agreement with Z Capital would bring significant value to shareholders and that it was the result from a comprehensive consideration of Z Capital’s definitive offer.
James Zenni, CEO and President of Z Capital and member of the casino operator’s Board of Directors, commented that they are pleased to be purchasing Affinity Gaming and thus becoming its single controlling shareholder. Mr. Zenni further noted that the gambling company provides customers with top quality entertainment options at an affordable price and that it operates in some the most attractive US markets.
Z Capital is looking forward to helping Affinity Gaming continue its expansion and drive further profitability through key operational improvements and enhanced efficiencies, the executive concluded.
Headquartered in Las Vegas, Affinity Gaming currently operates 11 casinos, with five of them being in Nevada. Three of the other properties are located in Colorado, two in Missouri, and one in Iowa.
