US Casino Company Affinity Gaming is Acquired by Z Capital

Z Capital acquires Affinity Gaming

The New York investment group, Z Capital Partners has just acquired the US casino gaming company, Affinity Gaming for the amount of $580 million as stated in their press release on Tuesday. Z Capital agreed to purchase each share of the Las Vegas-based company at $17.35, which put its valuation at $580 million. Being backed by Citizen Bank N.A., they plan on making the purchase official by the beginning of 2017.

Casinos are Already a Good Investment

Z Capital and its affiliates didn’t randomly decide to purchase the casino company, but rather already owned almost 41 percent of Affinity’s shares, and with this move, they will buy up the remaining shares to become full owners. Wanting to become the sole proprietors of the company, this move makes a lot of sense, as James Zenni, President and Chief Executive Officer of Z Capital and a member of the Affinity Board of Directors since 2014, stated

“We are pleased to enter into the agreement to purchase Affinity and transition from the largest shareholder to sole controlling shareholder. Affinity brings a compelling offer to consumers by providing high-quality entertainment at affordable prices in attractive markets, and I am confident that Z Capital is uniquely positioned to grow the business for years to come. We look forward to leveraging our broad expertise across the hospitality, restaurant, retail and consumer sectors to help Affinity continue to expand while driving profitability through operating improvements and enhanced efficiencies.”

The plan to purchase Affinity Gaming has been in the works for a while now, as Z Capital started its initial bid for the remaining shares at $15.00 per share until recently they decided to increase that offer to $17.35.

Working with an Established Market

The main reason Affinity Gaming is being sold at such a high value is due to their overall success in the US casino industry. Founded in 2010, they offer their services in 11 different casinos spread throughout Nevada, Colorado, Missouri, and Iowa. This would give Z Capital an already established market to work with, and along with their resources, they can help expand into more, possibly take their casino services to the online market. As of August 22, 69% of the outstanding shareholders have approved the purchase, so it looks like it will be a smooth transition.

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Neil White

Neil White - Editor in Chief

His drive and passion for casinos and the most popular games keep him in touch with the latest news and interests to provide the best for his readers.