Boyd’s goes all in on purchase of Peninsula casinos
Steve’s breakdown: You can’t move fast enough for these casino folks. They are off-to-the-races as soon as possible so get in there now while the news is still fresh. Casinos bought are in Louisiana, Kansas & Iowa.
LAS VEGAS, NV: Boyd Gaming Corporation has entered into a definitive agreement to purchase Peninsula Gaming LLC for $1.45 billion, the companies announced today.
Peninsula operates two casinos in Louisiana: Evangeline Downs Racetrack & Casino in Opelousas and the Amelia Belle Casino in Amelia. The company also has properties in Wichita, Kansas and in Dubuque and Northwood, Iowa.
The acquisition is subject to regulatory approvals and expected to close by the end of 2012.
“Acquiring Peninsula Gaming is a transformative transaction that fits perfectly into our growth strategy by expanding our Company’s scale, diversifying our platform, strengthening our financial profile, and generating meaningful value for our shareholders,” Keith Smith, president and chief executive officer of Boyd Gaming, said in a statement. “The Peninsula properties are a strong fit for us, as they are well-managed and operate in resilient markets in the Midwest and South. We anticipate this transaction will be immediately accretive to earnings and significantly increase our free cash flow.”
Boyd Gaming intends to fund the transaction with $200 million in cash and about $1.2 billion in debt.