Landry’s to Buy Golden Nugget of Las Vegas

Landry’s Restaurants Inc., whose operations include Rainforest Cafe and the Crab House, is buying the Golden Nugget hotel-casino in downtown Las Vegas, a first step in a strategy to get a slice of the lucrative gambling business and expand its profit pipeline. Landry’s shares rose 13% on the news.

Houston-based Landry’s announced Friday that it struck a deal with Poster Financial Group Inc., owners of the Golden Nugget, under which it would pay $140 million in cash and assume $155 million in debt for the Golden Nugget.

The Golden Nugget Las Vegas is considered the jewel of a faded downtown with 1,907 hotel rooms and 2,800 employees. Built in 1946, it’s the largest of the 14 hotel-casinos in the downtown area.

Landry’s owns and operates more than 300 restaurants, and the brands also include Landry’s Seafood House and Joe’s Crab Shack. It employs more than 30,000 people and had more than $1.1 billion in revenue in 2003.

“The Golden Nugget is the premier property in downtown Las Vegas, has outstanding brand recognition across the country, and is a perfect fit for us,” said Landry’s chairman and president, Tilman Fertitta.

Its shares rose $3.54 to $31.95 on the New York Stock Exchange.

This is the company’s first foray in the casino business. The storied property was once owned by developer Steve Wynn.