Supplier News
Asia – Gaming Partners to buy rival Dolphin for US$5.9m
By Phil - 25 April 2016
Gaming Partners International Corporation is to buy Dolphin Products Limited from Entertainment Gaming Asia.
Dolphin is a leading manufacturer and distributor of RFID and traditional gaming chips and plaques under the Dolphin brand to major casinos inAsia and Australia. GPIC is a leading manufacturer and supplier of casino table game equipment, including gaming chips and plaques, to licensed casinos worldwide under the brand names Paulson, Bourgogne et Grasset, Gemaco and Bud Jones.
GPIC will acquire the assets of Dolphin including fixed assets, raw materials and inventory, and intellectual property for an estimated cash purchase price of approximately $5.9m, subject to physical inventory counts at closing. The purchase price will be paid out in instalments over a 24-month period after closing. In addition, GPIC will make earn out payments to EGT over the next five years based on a varying percentage of net revenues on certain select sales to specific Asian-based casinos. The asset sale represents Dolphin’s and EGT’s exit from the table game equipment business and, as part of the transaction, Dolphin and EGT will each agree not to engage in the manufacture of table game equipment in competition with GPIC.
The companies anticipate negotiating a definitive asset purchase agreement to effect the transaction consistent with the terms of the LOI and closing the transaction in May, 2016. The closing of the transaction will be subject to GPIC’s satisfactory due diligence review of Dolphin and customary closing conditions to be set forth in the definitive asset purchase agreement. Accordingly, there is no guarantee the transaction will be consummated.
