Penn National Gaming acquires Pinnacle Entertainment for $2.8 billion
WYOMISSING, Pa. — Penn National Gaming will acquire Pinnacle Entertainment in a deal worth about $2.8 billion, the two companies announced Monday.
The acquisition will lead to greater operational and geographic diversity for Penn — operating a combined 41 properties in 20 jurisdictions throughout North America, the companies said.
Shareholders of Pinnacle, a gaming and hospitality company, will receive $20 in cash and 0.42 shares of Penn stock for each Pinnacle share, the news release states. That’s a total purchase price of $32.47 per Pinnacle share.
“The combined company will benefit from enhanced scale, additional growth opportunities and best-in-class operations, creating a more efficient integrated gaming company,” Timothy J. Wilmott, Chief Executive Officer of Penn National Gaming, said. “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.”
Also under the agreement, Penn — a casino and racetrack operator that has also expanded into social online gaming offerings — will release four of its newly acquired properties to Boyd Gaming Corp. Those include Ameristar Kansas City and Ameristar St. Charles, both in Missouri, Belterra Casino Resort in Indiana and Belterra Park in Ohio.