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Accel Entertainment Announces Expansion into Louisiana

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Accel Entertainment (NYSE: ACEL) has acquired 85% ownership of Toucan Gaming and LSM Gaming for approximately $40 million. The Louisiana-based route operators will operate as Toucan Gaming, led by Stan Guidroz who retains 15% ownership. The business is expected to generate $25 million in revenue and $6 million in Adjusted EBITDA by 2025. The acquisition adds 13 truck stop locations with 450 terminals and 60 3-machine locations with 180 terminals, expanding Accel's presence in the southeastern United States.

Accel Entertainment (NYSE: ACEL) ha acquisito l'85% di Toucan Gaming e LSM Gaming per circa 40 milioni di dollari. Gli operatori di percorso della Louisiana opereranno come Toucan Gaming, guidati da Stan Guidroz, che mantiene il 15% delle quote. Si prevede che l'azienda generi 25 milioni di dollari di entrate e 6 milioni di dollari di EBITDA adjusted entro il 2025. L'acquisizione aggiunge 13 punti di sosta con 450 terminal e 60 punti con 3 macchine ciascuno, per un totale di 180 terminal, ampliando la presenza di Accel nel sud-est degli Stati Uniti.

Accel Entertainment (NYSE: ACEL) ha adquirido el 85% de Toucan Gaming y LSM Gaming por aproximadamente 40 millones de dólares. Los operadores de ruta de Louisiana funcionarán como Toucan Gaming, liderados por Stan Guidroz, quien retiene el 15% de la propiedad. Se espera que el negocio genere 25 millones de dólares en ingresos y 6 millones de dólares en EBITDA ajustado para 2025. La adquisición añade 13 ubicaciones en paradas de camiones con 450 terminales y 60 ubicaciones con 3 máquinas cada una, sumando 180 terminales, lo que expande la presencia de Accel en el sureste de Estados Unidos.

Accel Entertainment (NYSE: ACEL)는 약 4천만 달러에 Toucan Gaming과 LSM Gaming의 85% 지분을 인수했습니다. 루이지애나 주에 기반을 둔 경로 운영자는 Stan Guidroz가 이끄는 Toucan Gaming으로 운영되며, 그는 15%의 소유권을 유지합니다. 이 사업은 2025년까지 2500만 달러의 수익과 600만 달러의 조정 EBITDA를 창출할 것으로 예상됩니다. 이번 인수로 450개의 단말기가 있는 13개의 트럭 정류장 위치와 각 3대의 기계가 있는 60개의 위치가 추가되어, Accel의 미국 남동부 지역 내 존재감을 확대합니다.

Accel Entertainment (NYSE: ACEL) a acquis l'intégralité de 85% de Toucan Gaming et LSM Gaming pour environ 40 millions de dollars. Les opérateurs de parcours basés en Louisiane fonctionneront sous le nom de Toucan Gaming, dirigés par Stan Guidroz, qui détient 15% de la propriété. On s'attend à ce que l'entreprise génère 25 millions de dollars de revenus et 6 millions de dollars d'EBITDA ajusté d'ici 2025. L'acquisition ajoute 13 emplacements de stations-service avec 450 terminaux et 60 emplacements à 3 machines avec 180 terminaux, élargissant la présence d'Accel dans le sud-est des États-Unis.

Accel Entertainment (NYSE: ACEL) hat 85% der Anteile an Toucan Gaming und LSM Gaming für etwa 40 Millionen Dollar erworben. Die in Louisiana ansässigen Betreiber werden als Toucan Gaming agieren, unter der Leitung von Stan Guidroz, der 15% des Eigentums behält. Es wird erwartet, dass das Unternehmen bis 2025 25 Millionen Dollar Umsatz und 6 Millionen Dollar bereinigtes EBITDA generiert. Die Akquisition fügt 13 Truckstop-Standorte mit 450 Terminals und 60 Standorte mit 3 Maschinen und insgesamt 180 Terminals hinzu, wodurch Accels Präsenz im Südosten der Vereinigten Staaten erweitert wird.

Positive
  • Acquisition expected to generate $25M revenue and $6M Adjusted EBITDA by 2025
  • Strategic expansion into southeastern U.S. market
  • Addition of 630 gaming terminals across 73 locations
  • Retention of existing management with industry expertise
Negative
  • Significant capital expenditure of $40M for acquisition

Insights

The $40 million acquisition of Toucan Gaming marks a strategic expansion for Accel into Louisiana's video poker market. The deal's structure, acquiring 85% ownership while retaining key leadership, demonstrates smart execution. With projected revenue of $25 million and Adjusted EBITDA of $6 million by 2025, the transaction values Toucan at approximately 6.7x forward EBITDA, which appears reasonable for the gaming sector.

The addition of 630 gaming terminals across 73 locations provides immediate scale in Louisiana. The mix of larger truck stop locations (averaging 35 terminals each) and smaller venues creates a diversified footprint. Most importantly, this southeastern U.S. expansion opens new growth corridors beyond Accel's core markets, potentially serving as a platform for further regional consolidation.

This acquisition strategically positions Accel in Louisiana's regulated video poker market, which operates under different rules than traditional slot routes. The 13 truck stop locations are particularly valuable assets, as they can host more machines and typically generate higher revenue per unit than smaller venues. The retention of Stan Guidroz, a seasoned local operator, mitigates execution risk and maintains important relationships with location owners.

The Louisiana gaming market offers unique advantages, including

  • Lower competition compared to saturated markets
  • Established regulatory framework for video poker
  • Strong gaming culture in the region
This move could serve as a springboard for further southeastern expansion, potentially into neighboring states with similar gaming regulations.

CHICAGO--(BUSINESS WIRE)-- Accel Entertainment, Inc. (NYSE: ACEL) (“Accel” or the “Company”), a leading distributed gaming operator, today announced that it has completed the acquisition of 85% of the ownership interests of Toucan Gaming, LLC and LSM Gaming, LLC, two Louisiana-based route operators and owners of multiple licensed video poker establishments (collectively, “Toucan”), for approximately $40 million. The combined business will operate as Toucan Gaming throughout Louisiana and will be led by Stan Guidroz, an industry-leading gaming executive and current CEO of Toucan Gaming. Mr. Guidroz owns the remaining 15% of Toucan’s ownership interests and will lead the Accel team supporting Toucan’s continued growth.

Transaction highlights include:

  • A business that is expected to generate approximately $25 million of revenue and $6 million of Adjusted EBITDA in 2025;
  • Further expansion of Accel’s operations into the southeastern United States;
  • Adds 13 truck stop locations which include a total of 450 terminals; and
  • Adds 60 3-machine locations which include a total of 180 terminals.

Accel CEO Andy Rubenstein commented, “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. 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.”

“Today’s announcement with Accel is an exciting next step for the evolution of Toucan Gaming,” said Stan Guidroz, Owner and CEO of Toucan. “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.”

About Toucan

Toucan is Louisiana’s fastest growing gaming and amusements provider. It is set apart from others by its entrepreneurial and ambitious team focused on creating outstanding gaming experiences and developing the most profitable gaming locations. Toucan Gaming uses the latest equipment and technology along with a Relax & Enjoy vibe to elevate the gaming experience. Toucan’s sales and support is statewide, with offices in Shreveport, Lafayette, and coming soon to New Orleans.

About LSM

LSM Gaming started as a family-owned Louisiana video poker gaming company and has been in business for decades as a licensed Louisiana device owner and establishment operator. The Company has assets placed in the northwest Louisiana tri-parish area including a portfolio of eight truck stop accounts and approximately thirty (30) 3-machine locations, along with a tenured and experienced staff. The company has been managed by Mr. Guidroz for the past three years.

About Accel

Accel is a leading distributed gaming operator in the United States and a preferred partner for local business owners in the markets it serves. Accel offers turnkey full-service gaming solutions to authorized non-casino locations such as bars, restaurants, convenience stores, truck stops, and fraternal and veteran establishments across the country. Accel installs, maintains, operates and services gaming terminals and related equipment for its location partners as well as redemption devices, stand-alone ATMs and amusement devices, including jukeboxes, dartboards, pool tables, and other entertainment related equipment. Accel also designs and manufactures gaming terminals and related equipment.

Cautionary Note Regarding Forward-Looking Statements

This press release may include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact included in this press release are forward-looking statements, including, but not limited to, any statements regarding our estimates of Adjusted EBITDA, our ability to expand into the Southeastern market and the anticipated effects and benefits from acquiring Toucan. The words “predict,” “estimated,” “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “will,” “would,” “continue,” and similar expressions or the negatives thereof are intended to identify forward-looking statements. These forward-looking statements represent our current reasonable expectations and involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance and achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. We cannot guarantee the accuracy of the forward-looking statements, and you should be aware that results and events could differ materially and adversely from those contained in the forward-looking statements due to a number of factors including, but not limited to: the effective integration of Toucan’s operations, establishments and terminals with Accel’s, the integration of new technology to Accel’s portfolio and the integration of player rewards programs into Accel’s system or expansion of those rewards programs in other US markets; Accel’s ability to operate in existing markets or expand into new jurisdictions; Accel’s ability to offer new and innovative products and services that fulfill the needs of location partners and create strong and sustained player appeal; Accel’s dependence on relationships with key manufacturers, developers and third parties to obtain gaming terminals, amusement machines, and related supplies, programs, and technologies for its business on acceptable terms; the negative impact on Accel’s future results of operations by the slow growth in demand for gaming terminals and by the slow growth of new gaming jurisdictions; Accel’s heavy dependency on its ability to win, maintain and renew contracts with location partners; the parties' ability to satisfy the conditions to the consummation of the proposed acquisition of Fairmount Holdings, Inc. and the risk that the proposed acquisition may not be completed in a timely manner or at all; unfavorable macroeconomic conditions or decreased discretionary spending due to other factors such as interest rate volatility, persistent inflation, actual or perceived instability in the U.S. and global banking systems, high fuel rates, recessions, epidemics or other public health issues, terrorist activity or threat thereof, civil unrest or other macroeconomic or political uncertainties, that could adversely affect Accel’s business, results of operations, cash flows and financial conditions and other risks and uncertainties indicated from time to time in documents filed or to be filed with the Securities and Exchange Commission (“SEC”).

Accordingly, forward-looking statements, including any projections or analysis, should not be viewed as factual and should not be relied upon as an accurate prediction of future results. The forward-looking statements contained in this press release are based on our current expectations and beliefs concerning future developments and their potential effects on Accel. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control), or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those factors described in the section entitled “Risk Factors” in the Annual Report on Form 10-K for the fiscal year ended December 31, 2023 filed by Accel with the SEC on February 28, 2024 (the “Form 10-K”), as well as Accel’s other filings with the SEC. Except as required by law, we do not undertake publicly to update or revise these statements, even if experience or future changes make it clear that any projected results expressed in this or other press releases or future quarterly reports, or company statements will not be realized. In addition, the inclusion of any statement in this press release does not constitute an admission by us that the events or circumstances described in such statement are material. We qualify all of our forward-looking statements by these cautionary statements. In addition, the industry in which we operate is subject to a high degree of uncertainty and risk due to a variety of factors including those described in the section entitled “Risk Factors” in the Form 10-K, as well as Accel’s other filings with the SEC. These and other factors could cause our results to differ materially from those expressed in this press release.

Industry and Market Data

Unless otherwise indicated, information contained in this press release concerning our industry and the markets in which we operate, including our general expectations and market position, market opportunity, and market size, is based on information from various sources, on assumptions that we have made that are based on those data and other similar sources, and on our knowledge of the markets for our services. This information includes a number of assumptions and limitations, and you are cautioned not to give undue weight to such information. In addition, projections, assumptions, and estimates of our future performance and the future performance of the industry in which we operate are necessarily subject to a high degree of uncertainty and risk due to a variety of factors, including those described in the Annual Report on Form 10-K filed by Accel with the SEC, as well as Accel's other filings with the SEC. These and other factors could cause results to differ materially from those expressed in the estimates made by third parties and by us.

Non-GAAP Financial Information

This press release includes certain financial information not prepared in accordance with Generally Accepted Accounting Principles in the United States (“GAAP”), including Adjusted EBITDA. Adjusted EBITDA is a non-GAAP financial measure and is a key metric used to monitor ongoing core operations. Management of Accel believes Adjusted EBITDA enhances the understanding of Accel’s underlying drivers of profitability and trends in Accel’s business and facilitates company-to-company and period-to-period comparisons, because this non-GAAP financial measure excludes the effects of certain non-cash items, represents certain nonrecurring items that are unrelated to core performance, or excludes non-core operations. Management of Accel also believes that this non-GAAP financial measure is used by investors, analysts and other interested parties as measures of financial performance.

We have not reconciled our Adjusted EBITDA estimate for fiscal year 2025 because certain items that impact these figures are uncertain or out of our control and cannot be reasonably predicted. Accordingly, reconciliation of our Adjusted EBITDA estimate is not available without unreasonable effort.

Media

Eric Bonach

H/Advisors Abernathy

212-371-5999

eric.bonach@h-advisors.global

Source: Accel Entertainment, Inc.

FAQ

How much did Accel Entertainment (ACEL) pay for Toucan Gaming acquisition?

Accel Entertainment paid approximately $40 million for 85% ownership of Toucan Gaming and LSM Gaming.

What is the expected revenue from Accel's (ACEL) Toucan Gaming acquisition?

The acquisition is expected to generate approximately $25 million in revenue and $6 million in Adjusted EBITDA by 2025.

How many gaming terminals did Accel (ACEL) acquire in the Toucan Gaming deal?

Accel acquired a total of 630 terminals: 450 terminals across 13 truck stop locations and 180 terminals across 60 3-machine locations.

Accel Entertainment, Inc.

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