The Majestic Star Casino, LLC and its affiliates (the "Company") announced that it has completed the acquisition of Trump Indiana, Inc. ("Trump Indiana"). Effective today, the Company will own and operate two (2) casino vessels and a hotel at Buffington Harbor in Gary, IN. Under the terms of a purchase agreement dated November 3, 2005, the Company acquired Trump Indiana for a purchase price of $253 million, subject to certain adjustments.
The Company is wholly owned by Detroit businessman Don H. Barden, who is the country's first and only African American to own a national casino company. Mr. Barden, Chairman and CEO of the Company, now owns five (5) casino properties with annual revenues exceeding $500 million. The Company is one of only a handful of privately-held gaming companies in the United States.
Commenting on the closing of the acquisition, Mr. Barden said, "This was a complicated deal, but I am very pleased with the outcome. The transaction was a natural next step for us. We will immediately benefit from combining the two operations by realizing significant efficiencies. Additionally, we now control over 300 acres of land at Buffington Harbor, which creates an extraordinary development opportunity. We are positioned to become the most competitive gaming operation in the Chicagoland market."
"Initially, the Company will focus on a successful integration of Majestic Star and Majestic Star II (formerly known as Trump Indiana) and on achieving the significant cost savings and synergies identified through our due diligence process. Over time, we expect to improve our cash flow and strengthen our balance sheet. With a new source of revenue and cash flow, we expect to generate significant free cash flow to be used to reduce debt and invest in each of our properties."
Mr. Barden continued, "I would like to take this opportunity to thank my executive management team, our investment bankers and attorneys. This was truly a team effort and we could not have closed on this deal without everyone's commitment and tenacity. I want to welcome the Trump Indiana team members to the Company. We look forward to a long and mutually rewarding relationship."
The Majestic Star Casino, LLC is a multi-jurisdictional gaming company. Majestic also owns and operates a Fitzgeralds-brand casino and hotel in Tunica County, Mississippi (Fitzgeralds Tunica) and a Fitzgeralds-brand casino in Black Hawk, Colorado (Fitzgeralds Black Hawk). Majestic also manages for Barden Development, Inc., its parent company, a casino and hotel in downtown Las Vegas ("Fitzgeralds Las Vegas"). As of December 31, 2004, the casinos that Majestic owns and manages collectively contained approximately 4,496 slot machines, 119 table games and 1,145 hotel rooms.
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