Penn National acquires $2.8b Pinnacle Entertainment

Penn National acquires $2.8b Pinnacle Entertainment

Thursday, December 21, 2017 Posted by Craig Davies
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Casino catalogue set to be raised following deal

Penn National is set to significantly enhance its portfolio of casinos within North America, following the announcement of a $2.8b cash and stock transaction to acquire Pinnacle Entertainment.

As part of the deal Pinnacle shareholders are set to receive $20 per share, as well as 0.42 shares of Penn National common stock for each Pinnacle share.

The deal is also expected to generate approximately $100m in annual run rate cost synergies, in addition to adding to its free cash flow per share in the first year.

Eric Schippers, senior vice president of public affairs & government relations at Penn National, told “We are extremely excited by what is truly a transformational acquisition for our company.

“We have known and admired Pinnacle for many years. They have a highly complementary portfolio of gaming properties including some of the best-in-class casinos in their markets.

“This was a natural fit for both companies and both of us have similar corporate cultures, values and operating philosophies.

“This $2.8b deal, which is anticipated to close in the second half of 2018, further enhances our position as North America’s leading regional gaming company by allowing us to combine two of the top player loyalty programs in the gaming industry, which will help to grow our omni-channel platform of retail, social, regional and destination gaming.

“We will go from 29 properties in 18 jurisdictions and 19,000 employees, to 41 properties in 20 jurisdictions and more than 35,000 employees.

“We’re excited to be entering new markets with best-in-class casinos there, including Ameristar Black Hawk, Colorado; Ameristar Council Bluffs, Iowa and L’Auberge Lake Charles, Louisiana, among others.

“In leveraging the strengths of both our companies, we’ll be able to create an unparalleled experience for our regional gaming customers.”

As part of the deal, Boyd Gaming are also to purchase four of Pinnacle’s gaming facilities, namely Ameristar Kansas City and Ameristar St. Charles in Missouri, Belterra Casino Resort in Indiana and Belterra Park in Ohio, for approximately $575m.

Totally Gaming says: By combining Penn National and Pinnacle Entertainment it is hoped a more efficient integrated gaming company will be created which can lead the way in its industry within North America. It is without doubt that the platform is there to achieve great success, it just remains to be seen what the future holds.

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