Boyd Gaming Makes Deal with Peninsula Gaming


05/30/2012
By Maria McCoyGoogle

Boyd Gaming, a well-known casino entertainment brand in the United Stated announced that they have signed a deal to purchase Peninsula Gaming LLC for $1.45 billion. The company hopes that the acquisition will grow its sales and outreach in the gambling industry and in the online casino games market.

President and Chief Executive Officer of Boyd, Keith Smith, stated,  “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.”

“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.

“We are paying an attractive multiple for high-quality high-margin assets. The properties operate in locations with limited gaming supply and stable tax and regulatory environments, resulting in attractive earnings before interest, tax, depreciation and amortization margins. Their management teams have considerable knowledge of their markets and have shown they are able to operate efficiently without compromising the guest experience.”

Five casinos will be added to Boyd Gaming’s operations – one in Kansas, two in Iowa and two in Louisiana. The deal is expected to close by the end of 2012.

Based in Las Vegas, Boyd Gaming Corporation is the owner and operator of seventeen top rated online casinos and casinos in Nevada, New Jersey, Mississippi, Illinois, Indiana and Louisiana.

 


Share |


JOIN
to win a
Ipod Nano