Gateway Casinos is contemplating a possible sale and is searching for a price ticket of about US$2bn. [Image: Shutterstock.com]
In search of suitors
Gateway Casinos & Leisure is contemplating a possible sale with a $2bn valuation. Bloomberg reported on Monday that sources recommend the corporate is a spread of strategic choices.
Gateway seeks a valuation of about $2bn, which incorporates debt of $1.1bn
Gateway – one among Canada’s greatest playing corporations – employed Macquarie Group Ltd. and Morgan Stanley to seek out potential suitors. One among Bloomberg’s sources, who wished to stay nameless, stated that Gateway seeks a valuation of about $2bn, which incorporates debt of $1.1bn.
A major operation
Gateway Casinos at the moment owns 31 properties throughout the Canadian provinces of Alberta, Ontario, and British Columbia. It has regularly grown via acquisitions and inner enlargement, with the corporate celebrating its 30-year anniversary in 2022.
The corporate at the moment has about 7,200 staff throughout its numerous properties, providing a whole lot of lodge rooms and 1000’s of slot machines to its patrons.
Personal fairness agency Catalyst Capital Group is the present majority proprietor of Gateway Casinos, having taken management again in 2010. The on line casino firm beforehand tried to go public with an preliminary public providing, in addition to via a particular goal acquisition firm merger. Neither of those finally got here to fruition, with no clear motive given for why they didn’t proceed.
A tumultuous 2023
The information that Gateway Casinos is contemplating a possible sale comes a few months after the premature passing of its CEO Tony Santo. He had been the corporate’s driving drive since October 2013 and had deliberate to retire on the finish of 2019 earlier than the onset of the pandemic led to him persevering with within the function.
from a small regional gaming firm to one of many largest gaming corporations in Canada.”
He helped to considerably develop the corporate, together with via the acquisition of quite a few properties from the Ontario Lottery and Gaming Company, in addition to Playtime Gaming. Remarking on his contribution to the corporate, Gateway Casinos President Tolek Strukoff stated Santo “grew Gateway from a small regional gaming firm to one of many largest gaming corporations in Canada.”
One other little bit of adversity that the corporate needed to cope with up to now this yr was in April when it was topic to a ransomware cyberattack. This led to lots of its Ontario properties having to quickly shut for 2 weeks till it resolved the difficulty. The non-public information of staff was reportedly leaked on account of this breach.