Majestic Star Acquires Trump Indiana

by Dan Perkins

based on a NABHOOD News Release

The Majestic Star Casino, LLC and its affiliates have announced the acquisition of the gaming assets and a hotel formerly belonging to Trump Indiana, Inc. ("Trump Indiana").  The purchase price is $253 million, subject to certain adjustments.

The Majestic Star Casino, LLC is a multi-jurisdictional gaming company wholly owned by Detroit businessman Don Barden, who serves as the company’s Chairman and CEO.  It is one of only a handful of privately-held gaming companies in the United States.

A purchase agreement dated November 3, 2005, allowed the Majestic Star Casino, LLC to take ownership and control of the assets of Trump Indiana, which consisted of two casino vessels and a hotel at Buffington Harbor in Gary, Indiana.  The acquisition took effect on December 21, 2005.

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.

The acquisition of Trump Indiana raises the holdings of The Majestic Star Casino, LLC’s to five casino properties with annual revenues exceeding $500 million. 

Commenting on the closing of the acquisition, 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."

According to Barden, the Company will initially 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.

The company also expects to improve its cash flow and strengthen it balance sheet over time.  ” 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," said Barden.

The End