GGRAsia – GPI completes deal for Ent Gaming Asia’s Dolphin assets

GPI completes deal for Ent Gaming Asia’s Dolphin assets

May 17, 2016 Newsdesk Industry Talk, Latest News, Top of the deck

Casino currency and table gaming equipment supplier Gaming Partners International Corp (GPI) on Monday announced that it had completed the purchase of the assets of Dolphin Products Ltd, a wholly owned subsidiary of Entertainment Gaming Asia Inc.

The total consideration for the deal was US$5.9 million, GPI said in a press release.

In addition, earn-out payments to Entertainment Gaming Asia might be made based on revenue from certain casinos, said GPI. Earn-outs are typically additional payments made to the owner of a business entity after the latter is sold to other parties.

Nasdaq-listed Entertainment Gaming Asia operates slot machines on a participation basis and manufactured and distributed gaming chips, gaming plaques and related products to casinos in Asia and Australia under the Dolphin brand.

Under the sale agreement announced in April, GPI acquired Dolphin’s fixed assets, raw materials and inventory, and intellectual property.

“We are excited to announce we have completed the purchase of Dolphin Products Ltd including their portfolio of gaming currency and manufacturing equipment,” said Gregory Gronau, GPI’s president and chief executive, in a statement.

He added: “The acquisition will allow us to expand our product portfolio while consolidating the manufacturing into our existing plants to better serve our casino customers.”

GPI said the acquisition would allow the company to expand the range of products it offers. “Dolphin is a well known brand in the industry and we look forward to adding their products to our portfolio,” said Mr Gronau.

The asset sale represents Dolphin’s and Entertainment Gaming Asia’s exit from the table game equipment business. As part of the transaction, Dolphin and Entertainment Gaming Asia have each agreed not to engage in the manufacture of table game equipment in competition with GPI, according to the details of the deal announced on April 22.