Harrah’s $27.8B sale closes
The deal by two private equity firms to acquire Harrah's Entertainment Inc. for $27.8 billion closed earlier today. The transaction includes four Atlantic City casinos.
The deal by two private equity firms to acquire Harrah's Entertainment Inc. for $27.8 billion closed earlier today. The transaction includes four Atlantic City casinos.
The deal by Apollo Management L.P. of New York and Texas Pacific Group Capital L.P. of Fort Worth, Texas, for the world's largest gambling company is ranked as one of the largest leveraged buyouts in U.S. history, according to Thomson Financial.
The price for the Las Vegas company includes the assumption of about $10.7 billion of Harrah's debt.
"It's terrific for the city and great for Harrah's," said attorney Paul O'Gara, who represented Apollo and Texas Pacific in the deal. "Harrah's now has private ownership, and it is a private company."
Under the terms of the agreement, Harrah's stockholders receive $90 in cash for each share of Harrah's common stock that they hold.
It's taken just over a year to close the deal that was first announced on Dec. 6, 2006. The gaming control boards of several jurisdictions where Harrah's owns properties have had to sign off on it.
The New Jersey Casino Control Commission gave a 5-0 approval of the merger in October. It was at that hearing that Gary Loveman, Harrah's Entertainment Inc.'s current chairman, chief executive officer and president announced that the current management and operational structure of the gaming company would remain intact.
Harrah's owns four casinos in Atlantic City - Bally's, Caesars, Harrah's Marina and Showboat casinos - and six in Las Vegas. Combined, the four Atlantic City casinos accounted for about 44 percent of last year's $4.9 billion total gambling revenue in the seaside resort.
Worldwide, Harrah's owns more than 50 properties that include casinos on land and in ships, and a golf course in Macao in South China. It is completing a 961-room, 44-story hotel tower, called Harrah's Waterfront Hotel, that the company plans to open by May in Atlantic City's Marina District.
It is also co-owner of the Chester Casino & Racetrack in Chester, Delaware County.
Harrah's stock will cease to trade on the New York Stock Exchange, the Chicago Stock Exchange and the Philadelphia Stock Exchange at the close of the market today.