U.S. Icahn Enterprises sells Tropicana Entertainment for $1.85 billion

U.S. diversified holding company Icahn Enterprises is cashing out of casino business Tropicana Entertainment Inc in a deal selling most of its properties and operations for $1.85 billion.

According to the deal, six of the eight casino properties it now runs will be sold to Gaming and Leisure Properties (GLPI) for $1.21 billion. The deal did not include the company’s Aruba casino and resort in the Caribbean, which would be sold separately as a condition of closing the deal.

The casino operations will be taken over by U.S. peer, Eldorado Resorts Inc, which will pay the remaining $640 million and lease the properties from GLPI for an initial 15-year period.

Icahn Enterprises, which owns a majority stake in Tropicana, typically buys undervalued assets, improves their operations, and ultimately sells them at a profit. Last week, the company announced that it decided to sell its wholly-owned subsidiary Federal-Mogul to U.S. Tenneco for $5.4 billion.