Rockets Owner Expands SPAC Deal by $2 Billion

Houston Rockets owner Tilman Fertitta has more on his plate than rebuilding the franchise.

The billionaire expanded the SPAC merger taking Fertitta Entertainment public to include more restaurant and hospitality companies.

Fertitta bought the Rockets for $2.2 billion in 2017.

The additions will lift the valuation of the combined company from $6.6 billion up to $8.6 billion. The properties added to the deal include Catch Hospitality Group and Mastro’s Restaurants, among others.

• Fertitta will own around 72% of the company and be its chairman, president, and CEO. 
• Fertitta Entertainment already includes Golden Nugget Hotel & Casinos, Golden Nugget Online Gaming, and restaurant company Landry’s.

The merger with FAST Acquisition agreed to in February initially had Fertitta claiming a 60% stake, with investors like Fidelity and BlackRock contributing $1.2 billion for roughly 35% of the business.

Landry’s said on Wednesday that shareholders have agreed to purchase $1.24 billion in stock upon completion of the merger.  

The combined companies’ net revenues are estimated at $917-$920 million for the second quarter of 2021. FAST previously raised $200 million in its August 2020 IPO.