Icahn Enterprises initially bought a stake in Tropicana in 2008.
Tropicana Entertainment Inc. announced on Monday a definitive sales agreement to sell its real estate to Gaming and Leisure Properties, Inc. and to merge its gaming and hotel operations into Eldorado Resorts Inc. for aggregate consideration of approximately $1.85 billion, according to a release from Tropicana.
"We identified this undervalued asset as being a ideal situation to deploy our modus operandi, by which we seek to acquire undervalued assets, nurture, guide and improve their condition and operations, and to ultimately greatly enhance value for all shareholders", Icahn said.
The company reached a deal to sell Tropicana's real estate to Gaming and Leisure Properties Inc.
The company is acquiring the operating assets of seven casinos in six states including the Tropicana Laughlin and MontBleu Casino in South Lake Tahoe. The property features 1,088 slot machines, 30 table games, a 12-table poker room and four dining options, including Prime BurgerHouse, the award-winning Buckinghams Steakhouse & Lounge, the Indulge Show Kitchen Buffet and the 24-hour Crave Deli.
Rodio meanwhile hailed Tropicana's turnaround in his own statement as "one of the industry's true success stories" that had created hundreds of construction jobs and employed thousands of additional employees since 2010. Icahn Enterprises owned about 84% of Tropicana as of December 31, according to a filing.
As it enters new gaming jurisdictions in New Jersey and Illinois, Eldorado described the seven Tropicana properties as in "good shape".
The billionaire investor had reinvested more than $200 million into the Atlantic City property, insiders say, and Tropicana Atlantic City expanded into the nearby boutique hotel The Chelsea past year.
The addition of Tropicana's "high quality" assets will allow Eldorado to save about $40 million in the first year following the close of the deal later in 2018.
Earlier it announced that it would also acquire the Grand Victoria Casino in Elgin, Illinois for $327.5 million in cash.
Additionally, Icahn previous year sold the Trump Taj Mahal in Atlantic City to Hard Rock International, which is redeveloping the site as the Hard Rock Hotel & Casino Atlantic City.