Cannery, Harrah’s Change Hands

Lisa Plummer -- Tradeshow Week, 1/4/2008 2:33:00 PM

Private equity firms Apollo Management and Texas Pacific Group have acquired Harrah’s Entertainment for $17.7 billion. The two private equity firms purchased 186 million shares of the casino company for $90 a share. The Nevada Gaming Commission approved the purchase after Apollo and TPG made assurances of support for Harrah’s expansion plans, which include $4 billion in growth-related spending through 2012. The deal, which also recently received Natl. Indian Gaming Commission approval, is expected to close in 12 to 14 months.

Australia-based casino company Crown Ltd. is purchasing Cannery Casino Resorts for $1.8 billion. In the deal, Crown gains the Cannery casino in North Las Vegas and the $250 million Eastside Cannery, currently under construction on Boulder Highway. The companies expect the transaction to meet with regulatory commission approval in approximately 18 months. Cannery also manages the Rampart Casino in the JW Marriott in Summerlin.

On Dec. 19, the Golden Nugget Hotel & Casino completed a $60 million expansion project, bringing the total cost of refurbishment since Landry’s purchased the property in 2005 to $170 million. The project included an expanded casino floor, and a new nightclub, restaurant and 11,000 square foot events center, “The Grand.” Added to the property’s original 21,000 sq. ft. meeting space, the event center brings the total meeting and event space to 32,000 sq. ft. Also in the early planning stages is a 500-room hotel tower, which will add another $150 million to the property’s expansion price tag.