Great Canadian Gaming is buying Casino New Brunswick from Sonco Gaming for $95m.
The company’s acquisition, which will be funded by existing cash balances, will include ownership and operation of CNB’s existing casino, hotel and a multi-use entertainment and convention centre. CNB, located in Moncton, New Brunswick, was developed by Sonco and commenced operations in May 2010. In 2014, the facility, which is the only full service casino in the province of New Brunswick, generated approximately $38m in revenues. The purchase price represents an acquisition multiple of approximately 8.0x – 8.5x the casino’s 2014 normalized EBITDA.
“The acquisition of Casino New Brunswick represents an important opportunity for value creation and will allow Great Canadian to further expand its Canadian footprint,” stated Rod Baker, the company’s President and Chief Executive Officer. “We are very much looking forward to the potential of working with the New Brunswick Lotteries and Gaming Corporation, the Department of Public Safety Gaming Control Branch and the City of Moncton. Casino New Brunswick is a high-quality gaming and entertainment facility that serves as both a local casino for guests from Moncton as well as a destination casino for guests from throughout New Brunswick and from other areas of Atlantic Canada. We are extremely excited at the prospect of welcoming CNB and its over 400 employees to the Great Canadian team.”