Supplier News
US – AGS announces plans for Cadillac Jack
By Phil - 3 June 2015
AGS, a leading supplier of Class II and Class III slot machines as well as live table games, has announced its plans for Cadillac Jack, a leading provider of Class II gaming machines for the North American tribal gaming market, with key regions of operation including Alabama, Mexico, and Wisconsin.
As previously announced on March 30, 2015, the deal to buy Cadillac Jack is valued at $370m in cash plus a promissory note of $12m. The acquisition was financed in part with the net proceeds of $265m of incremental term loans incurred by AP Gaming I, LLC under its First Lien Credit Agreement and $115 million principal amount of 11.25 per cent senior secured PIK notes due 2021 issued by AP Gaming Holdco, Inc.
“I am excited to start a new chapter in the AGS growth story,” said David Lopez, Chief Executive Officer for AGS. “Adding Cadillac Jack to the AGS family creates a bigger, broader, and more powerful gaming solutions provider. This is a significant milestone for our company and – in combination with our recent entry into table games and the acquisition of Colossal – further solidifies AGS as a serious player in the gaming space. Each organization’s respective strengths create excellent growth opportunities in the Class II and Class III markets, as well as an increased geographic footprint.”
“We are committed to our customers, employees, and stakeholders to complete this integration as efficiently as possible,” stated Mr. Lopez. “Our two businesses are highly complementary and very familiar with one another. The wealth of experience possessed by the combined team, along with the financial backing from our sponsors at Apollo, will allow us to effectively grow and improve our business.”
“I would like to thank everyone involved in leading to this successful and accelerated close,” added Lopez. “I am especially grateful to each and every team member from both organizations for staying focused on their business objectives throughout this transaction. The team is very excited for the prospects of our newly combined company and looks forward to our many future opportunities together.”
