Hard Rock being purchased by Seminole Tribe

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Saw this headline this a.m. Only posted part of article... I'm sure there will be more out there later.
Source: Associated Press

LONDON(AP) The Seminole Tribe of Florida is buying the Hard Rock business, including its massive collection of rock 'n' roll memorabilia, in a $965 million deal with British casino and hotel company Rank Group PLC.

The Hard Rock business includes 124 Hard Rock Cafes, four Hard Rock Hotels, two Hard Rock Casino Hotels, two Hard Rock Live! concert venues, and stakes in three unbranded hotels.

With it, the tribe acquires what is said to be the world's largest collection of rock memorabilia, some 70,000 pieces including Jimi Hendrix's Flying V guitar, one of Madonna's bustiers, a pair of Elton John's high-heeled shoes and guitars formerly owned by Bob Dylan, Eric Clapton and Chuck Berry.

"This is a proud moment for the Seminole Tribe of Florida and for all Indian tribes," said Mitchell Cypress, chairman of the elected Tribal Council. "It is also an opportunity for the Seminole Tribe to diversify its business operations and help a very successful company to achieve even greater growth."

 

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More detail

RANK'S HARD ROCK SOLD TO FLORIDA SEMINOLES

$965 million deal scheduled to close next March after shareholder approval

The intense speculation surrounding the fate and possible buyers for the Rank Group plc's Hard Rock division ended this week with the announcement that the British gambling group had sold the business to the Seminole tribe of Florida for $965 million (GBP 490 million)

Over the past week or more the UK business press has been speculating on whether major bookie groups like William Hill and Ladbrokes could soon be making a bid for the UK gambling group Rank, or whether they would wait for the group to shed its Hard Rock Cafe components first.

Media reports claimed that American gambling groups were known to be looking at the potential of acquiring Rank and/or Hard Rock, which is attempting to focus on its casino and bingo operations. Rank chief executive Ian Burke announced earlier this year that advisers were looking at options for Hard Rock (see previous InfoPowa reports). Buying Hard Rock could be expensive, opined UK analysts who estimated the going rate could be as high as GBP 500 million.

In a company statement announcing the agreement of sale, Ian Burke, chief executive of Rank said: Today's announcement sets a clear strategic course for Rank as a focused gaming business. We have maximised the value of Hard Rock through this disposal following a thorough strategic review and competitive auction."

GBP350 million is to be returned to shareholders through a dividend payment of approximately 65p per share. In terms of the deal, Rank will retain the Hard Rock Casino in London but under the Rank Gaming brand, and is to focus on its gaming brands such as Mecca Bingo and Blue Square. Rank has also appointed Peter Johnson, the current head of Inchcape, as chairman. He will succeed Alun Cathcart who will retire at the end of February 2007.

Lauding the sale, The Telegraph commented that the focus on UK facing gaming will place Rank in a position to tackle issues such as the introduction of a smoking ban in England next year. It says that Scottish Bingo halls have seen a drop in revenue since the introduction of a smoking ban, but that the group's Grosvenor Casinos have seen turnover rise 6 percent.

The Financial Times analysed the sale, reporting that the deal is the result of over two weeks of negotiations between Rank and Seminole Hard Rock Hotels and Casinos, which is a collaboration between the Seminole Tribe of Florida and Hard Rock International. It calls the Hard Rock Caf one of the worlds most recognisable brands.

The Hard Rock business includes 124 Hard Rock Cafes, four Hard Rock Hotels, two Hard Rock Casino Hotels, two Hard Rock Live! concert venues, and stakes in three unbranded hotels.

With it, the tribe acquires what is said to be the world's largest collection of rock memorabilia, some 70 000 pieces including Jimi Hendrix's Flying V guitar, one of Madonna's bustiers, a pair of Elton John's high-heeled shoes and guitars formerly owned by Bob Dylan, Eric Clapton and Chuck Berry.

"This is a proud moment for the Seminole Tribe of Florida and for all Indian tribes," said Mitchell Cypress, chairman of the elected Tribal Council. "It is also an opportunity for the Seminole Tribe to diversify its business operations and help a very successful company to achieve even greater growth."

The sale, which is subject to shareholder approval, is scheduled to be completed in March.