Penn National and Boyd Gaming complete Pinnacle acquisitions
Penn National Gaming has completed its previously announced acquisition of Pinnacle Entertainment, with Boyd Gaming also purchasing four Pinnacle properties.
Penn National announced the agreement of a $2.8bn cash-plus-stock deal with Pinnacle back in December, receiving the green light from the Missouri Gaming Commission in August.
With the merger now confirmed, Penn National expects to make $100m in annual cost synergies.
Penn National CEO, Timothy J. Wilmott, said: "We expect to realise approximately $100m in cost-related synergies and expect to generate further revenue synergies through efforts such as monetising our database; cross marketing our properties; sports wagering; and further leveraging our social gaming platform."
Meanwhile, Boyd has purchased Pinnacle’s gaming operations at Ameristar Kansas City and Ameristar St. Charles in Missouri, Belterra Casino Resort in Indiana and Belterra Park in Ohio for approximately $563.5m in cash.
Boyd Gaming President and CEO, Keith Smith, said: "By adding these four high-quality properties, we have significantly expanded our portfolio and enhanced our free cash flow profile at a compelling multiple."