Accel purchases of controlling interest in two Louisiana-based route operators

Tuesday, November 5, 2024 10:08 AM
Photo:  Shutterstock
  • Louisiana
  • Rege Behe, CDC Gaming

Accel Entertainment Tuesday announced the purchase of 85% of the ownership interests in Toucan Gaming and LSM Gaming. The Louisiana-based route operators, owners of multiple licensed video poker establishments, were purchased for approximately $40 million.

The combined business will operate as Toucan Gaming in Louisiana and will be led by current Toucan Gaming CEO Stan Guidroz. Guidroz owns the remaining 15% of Toucan’s ownership interests and will lead the Accel team supporting Toucan’s continued growth.

“The acquisition of Toucan further expands Accel’s reach into the attractive southeastern U.S. market, where we believe there is significant untapped demand and aligns with our ongoing strategy to expand Accel’s presence both organically and through acquisitions,” said Accel CEO Andy Rubenstein in a statement. “Toucan is a well-run and highly respected company that shares many of Accel’s values and entrepreneurial attributes. I am confident Toucan is the perfect partner for our company, and we look forward to helping Stan grow the brand.”

Toucan is expected to generate approximately $25 million of revenue and $6 million of adjusted EBITDA in 2025. The purchase expands Accel’s operations in the southeastern United States.

Accel will add 13 truck stop locations, including 450 terminals, and 60 three-machine locations, including 180 terminals.

“Today’s announcement with Accel is an exciting next step for the evolution of Toucan Gaming,” said Guidroz. “By partnering with an industry leader like Accel, we can quickly accelerate our growth plans and leverage the many benefits that increased innovation and scale brings to our establishment owners and playing customers. We could not be more thrilled to become a part of the Accel family and look forward to bolstering Accel’s presence in the southeastern U.S. market under the Toucan brand.”

A statement from Deutsche Bank analysts Steven Pizzella and Carlos Santarelli was positive about the acquisition.

“Overall, the acquisition further diversifies ACEL’s Illinois concentration (~75% of revenue), which we view positively,” the statement read, “and allows ACEL to further grow in the southeastern market, by combining an already established operator with ACEL’s experience and balance sheet for further growth.”

Rege Behe is lead contributor to CDC Gaming. He can be reached at rbehe@cdcgaming.com. Please follow @RegeBehe_exPTR on Twitter.