Major gaming company Boyd Gaming Corporation announced today it has completed the purchase of four casino properties from rival Pinnacle Entertainment for the approximate sum of $563.5 million in cash. Boyd has now added Ameristar St. Charles and Ameristar Kansas City in Missouri, Belterra Casino Resort at Florence, Indiana, and Belterra Park in Cincinnati, Ohio to its own portfolio of places.
Including the four above-mentioned casinos, the business now operates 29 properties.
The deal’s completion comes less than a month later Boyd completed the purchase of Valley Forge Casino Resort at King of Prussia, Pennsylvania.
Commenting on the closure of its most recent acquisition deal, Boyd President and CEO Keith Smith said it has expanded their portfolio significantly and has enhanced their free cash flow profile at a “compelling multiple. ” The executive pointed out that the accession of those four properties has gained them access to three of the largest gambling markets in the Midwest.
Included in this deal, Boyd has entered into a master rental arrangement with casino REIT Gaming and Leisure Properties, which is the owner of this Ameristar St. Charles and Ameristar Kansas City and of Belterrra Casino Resort. In addition, Boyd has bought both the real estate and also the performance of Belterra Park to close the purchase of four properties.
Penn National Gaming Finalizes Purchase of Pinnacle Entertainment
The closure of Boyd’s purchase of those four Pinnacle properties paved the way for the completion of another, larger acquisition deal. Penn National has been able to finalize the purchase of Pinnacle at a deal valued at $2.8 billion.
News about Penn National finally acquiring its rival hospitality and gaming company arrive just over of week following the US Federal Trade Commission blessed the 2 operators’ union . But, Pinnacle was required to complete the sale of the four above-mentioned properties to Boyd in order to be able to combine Penn National.
Commenting on the deal’s closed, Penn National CEO Timothy J. Wilmott said in a press release from earlier today their purchase of Pinnacle marked a “significant milestone” in the organization ’s “24-year history of expansion. ”
Penn National expects to realize cost synergies of about $100 million as a consequence from the deal and to generate further revenue synergies from “monetizing [their] database; cross advertising [their] properties; sports wagering; and further diluting [their] social gambling platform. ”
The two newly completed prices come as another manifestation of the now very consistent merger and acquisition trend across the US land-based casino industry. Urged by the growing competition, the recent legalization of casino gaming across several states, and other regulatory and non-regulatory challenges, some of the country ’s largest gambling and hospitality companies have made M&A moves to cement their place in the market or profit better position.
Caesars recently purchased two Indiana-based properties from Centaur Holdings at a $1.7-billion deal, while Eldorado Resorts closed the purchase of Tropicana Entertainment to get $1.85 billion a few days ago.
The merger and acquisition prices are also likely to secure people involved in them together with better place for entering the nascent US sports betting market after the May 14 SCOTUS ruling that annulled a long-standing ban on wagering on professional and amateur sports.
And each one the above-mentioned companies are seeking to capitalize online sports betting and have moved to prepare themselves to get an entry into the marketplace. Penn National recently became one of the first two companies to be issued a sports betting license in Pennsylvania. The operator will run a sportsbook at Hollywood Casino in Dauphin County along with an internet operation.
Boyd has forged earlier this season a partnership with FanDuel to jointly operate sports betting providers throughout the hospitality and gaming company’s now enlarged portfolio of properties. In terms of Eldorado, the business has combined forces with British bookmaker William Hill to influence on the latter’s years of international sports betting experience.
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