LAS VEGAS Harrahs Entertainment has agreed to acquire Harveys Casino Resorts from Colony Capital Investors III, L.P., for a total price of $625 million, inclusive of the existing debt. The company will also assume a $50 million off-balance-sheet obligation of Harveys.
The acquisition is subject to customary regulatory approvals and is expected to close during the third quarter, or as soon as approvals have been obtained. The transaction was approved by the Board of Directors of Harrahs Entertainment as well as by Colony Capital.
As part of the purchase agreement, Harrahs Entertainment will acquire Harveys Resort & Casino in Lake Tahoe, NV; the Harveys Casino Hotel and the Bluffs Run Casino, both in Council Bluffs, IA, and Harveys Wagon Wheel Hotel/Casino in Central City, CO. Harrahs will not acquire Colony Capitals agreement to purchase the Resorts Casino Hotel in Atlantic City.
In other news, Harrahs Entertainment announced several senior management changes including the appointment of Gary Loveman, COO, to the new position of president. He will continue to serve as COO in addition to his new role.
Colin Reed, CFO, has resigned to assume the post of president/CEO of Nashville, TN based Gaylord Entertainment Company.
Charles Atwood, vp/treasurer has been promoted to svp/CFO. (4/25/01)