Bloomberg – Scientific Games Corp. (SGMS), the slot machine supplier controlled by billionaire Ronald Perelman, appointed former SHFL Entertainment Inc. Chief Executive Officer Gavin Isaacs as its CEO today.
Isaacs replaces David Kennedy, who had held the position since November, the New York-based company said in a statement today. Kennedy will remain at Scientific Games as executive vice chairman.
Isaacs, 49, takes over as the gambling device industry faces weak consumer spending, casino gluts in some markets and consolidation. SHFL, a Las Vegas-based maker of shuffling machines and gaming equipment, was bought last year by rival Bally Technologies Inc. (BYI) for $1.3 billion. That deal followed Scientific Games’ own purchase of WMS Industries Inc. for about $1.5 billion.
He is “the ideal choice to lead our efforts to achieve greater profitability and increased cash flow,” Chairman Perelman said in the statement.
Scientific Games rose 11 percent to $10.18 at 9:57 a.m. in New York. The stock had dropped 46 percent this year through yesterday. Perelman owns a 40 percent stake, data compiled by Bloomberg show.