Casino Gambling

Penn National buys Pinnacle; then Boyd buys 4 casinos from Penn

The parent company of Boomtown Biloxi and Hollywood Casino Gulf Coast on Monday bought Pinnacle Entertainment in a $2.8 billion deal.

The companies announced the sale Monday, and said that as part of the deal, Boyd Gaming, parent of IP Casino Biloxi, has entered into a deal with Penn National to buy four Pinnacle’s casinos: Ameristar Kansas City and Ameristar St. Charles in Missouri; Belterra Casino Resort in Indiana; and Belterra Park in Ohio, for approximately $575 million in cash.

Penn National Gaming is spending $20 in cash for each share, and Pinnacle shareholders will also get 0.42 shares of Penn for each Pinnacle share they own.

The transaction is expected to close in the second half of 2018 and Penn said the combined company will have 41 properties across 20 jurisdictions in North America, not including those acquired by Boyd. It will have 35,000 employees.

Pinnacle operates Ameristar Casino in Vicksburg and four Louisiana casinos in Baton Rouge, Bossier City, Harvey and Lake Charles.

“By combining our highly complementary portfolios and similar operating philosophies, we will be able to leverage the strengths of both our companies and create an unparalleled experience for our regional gaming customers, while generating significant value for our shareholders and business partners.” said Timothy Wilmott, chief executive officer of Penn National Gaming. “The combined company will benefit from enhanced scale, additional growth opportunities and best-in-class operations, creating a more efficient integrated gaming company.

“Going forward, we will have the financial and operational flexibility to further execute on our strategic objectives, while maintaining our track record of industry-leading profit margins and generating significant cash flow to reduce leverage over time. We look forward to welcoming Pinnacle’s talented employees to our team and to further enhancing our status as North America’s leading regional gaming operator.”

Associated Press contributed to this article.