Operator News
Canada – Century Casinos sells Calgary casino for CA$10m
By Phil - 5 August 2020
Century Casinos will sell the casino operations of Century Casino Calgary in Alberta to 2267166 Alberta Ltd. for CA$10m (US$7.5m based on the exchange rate on July 31, 2020) plus a three year quarterly earn out as specified in the agreement.
The CA$10m was paid at the execution of the definitive agreement and is non-refundable, except as described in the Agreement, but subject to working capital and other adjustments. CRA will continue to operate Century Sports (sports bar, bowling and entertainment) and to own the real estate.
The Agreement contemplates that CRA will enter into a lease agreement with the Buyer for the Calgary premises. The lease will have an annual net rent of approximately CAD 480,000 ($358,102 based on the exchange rate on July 31, 2020) and a term of three years.
“This transaction immediately strengthens our balance sheet,” Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos remarked. “The Calgary casino is one of our smaller operations, contributing $8.4m in net operating revenue and $1.2m in Adjusted EBITDA (approx. half from the casino operations we are selling and half from sports bar, bowling and entertainment operations we will continue operating) in 2019,” Mr. Haitzmann and Mr. Hoetzinger concluded.
The transaction, which is expected to close in fall 2020, is subject to approval by the Alberta Gaming, Liquor and Cannabis Commission, but the CA$10m payment already made to Century Casinos is non-refundable except as described in the Agreement.
