Las Vegas-based Gaming Partners International (GPI), a leading provider of casino currency and table game products worldwide, has bought GemGroup, a privately?held manufacturer of casino currency, cards and table layouts primarily sold under the Gemaco brand, and also received a significant order to supply new chips and plaques for a casino in Macau.
GPI has entered into a binding letter of intent to acquire the assets of GemGroup and its subsidiaries in an all cash transaction for an undisclosed amount. The companies anticipate closing the transaction on or before June 30, 2014.
"We are very pleased to acquire the Gemaco brand of products along with their manufacturing expertise,” said Gregory Gronau, president and CEO of GPI in a prepared statement. “We look forward to partnering with them to strengthen and expand our casino offerings. This acquisition strengthens our card manufacturing capabilities and increases our U.S. market share in both playing cards and table layouts, two important sources of recurring revenue. Further, it expands our product offerings in the growing Asia?Pacific region as Gemaco has a strong market presence in the layout business there. "
GPI also recently announced a large sale to an undisclosed Macau casino that includes nearly 900,000 chips and over 137,000 plaques from the company's Bourgogne et Grasset and Bud Jones brands totaling just under $6.4 million.
According to company press materials, GPI manufactures and supplies casino table game equipment to licensed casinos worldwide. Under the brand names of Paulson, Bourgogne et Grasset and Bud Jones, GPI provides casino currency such as chips, plaques and jetons; gaming furniture and table accessories; table layouts; playing cards; dice; and roulette wheels. GPI also pioneered the use of security features such as radio frequency identification device (RFID) technology in casino currency and provides RFID solutions including RFID readers, software and displays.