Caesars Entertainment has agreed to be acquired by Fertitta Entertainment, owners of the Golden Nugget Hotel & Casino, the Houston Rockets NBA franchise, and Landry's, the group that includes 450 full-service restaurants across the country representing well-known brands. Hospitality industry billionaire Tilman Fertitta, the company's CEO, currently is U.S. ambassador to Italy.
The $17.6 billion cash transaction includes paying off $11.9 billion of Caesars outstanding debt and about $5.7 billion for the company outright. Caesars shareholders will get $31 per share, about a 49 percent premium over the trading price in late February, when rumors of a sale were first reported. The Caesars board has approved the deal and recommends that the merger be approved by shareholders.
Fertitta Entertainment has its family roots in Texas and a long history in Las Vegas, with hospitality outlets spread across the country. The Golden Nugget brand alone has locations in downtown Las Vegas, Lake Tahoe and Laughlin, Nev., as well as in Atlantic City, and three additional establishments in Mississippi, Louisiana and Colorado. The deal expands Fertitta's Las Vegas presence in grand fashion, with eight major hotel-casino resorts on the Center Strip.
Fertitta expects the leadership teams of both companies to remain in their current roles and to lead the combined companies' operations.
The deal is subject to the approval of Caesars shareholders, as well as customary closing and regulatory approvals. It also includes a "go shop" period through mid-July, during which Casesars can consider and negotiate alternative acquisition offers.