Casino and hotel operator Circus Circus Enterprises Inc. said it has agreed to acquire Gold Strike Resorts for more than $500 million in cash and stock.
The deal will give Circus Circus three new casinos and part of a new resort in Las Vegas as well as half ownership of a Chicago-area riverboat casino, the Grand Victoria in Elgin, which Gold Strike also operates.
The value of the deal was based on Circus Circus’ stock price, which shot up $3.62 a share in heavy trading to close at $28.87 on the New York Stock Exchange.
Circus Circus will pay 17 million shares of its stock and some $12 million in cash for Gold Strike and will assume the debt of the Jean, Nev.-based company.
Gold Strike has three casinos in Nevada-Gold Strike, Nevada Landing and Railroad Pass.
