Gateway Casinos is contemplating a possible sale and is in search of 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 – considered one of Canada’s largest playing corporations – employed Macquarie Group Ltd. and Morgan Stanley to seek out potential suitors. One in all Bloomberg’s sources, who wished to stay nameless, stated that Gateway seeks a valuation of about $2bn, which incorporates debt of $1.1bn.
A big operation
Gateway Casinos presently owns 31 properties throughout the Canadian provinces of Alberta, Ontario, and British Columbia. It has steadily grown via acquisitions and inner enlargement, with the corporate celebrating its 30-year anniversary in 2022.
The corporate presently has about 7,200 staff throughout its varied properties, providing a whole bunch of resort 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 function acquisition firm merger. Neither of those in the end got here to fruition, with no clear cause 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 position.
from a small regional gaming firm to one of many largest gaming corporations in Canada.”
He helped to considerably broaden 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 thus far this yr was in April when it was topic to a ransomware cyberattack. This led to lots of its Ontario properties having to briefly shut for 2 weeks till it resolved the difficulty. The private information of staff was reportedly leaked because of this breach.