Penn National Gaming Inc. will acquire Pinnacle Entertainment Inc. in a cash-and-stock deal worth $2.8 billion, the Wyomissing-based company.
Penn National Gaming Inc. is spending $20 in cash for each share, and Pinnacle shareholders will also get 0.42 shares of Penn for each Pinnacle share they own. The stock-and-cash bid is worth an implied $32.47 per share, the companies said.
As part of the deal, Boyd Gaming Corp. is buying four of Penn National’s newly acquired properties. Those include the Ameristar St. Charles and the Ameristar Kansas City, both in Missouri, as well as the Belterra Casino Resort in Florence, Indiana, and Belterra Park in Cincinnati. Boyd will pay $575 million for those assets.
“By combining our highly complementary portfolios and similar operating philosophies, we will be able to leverage the strengths of both our companies and create an unparalleled experience for our regional gaming customers, while generating significant value for our shareholders and business partners”, – said in a statement Penn National CEO Timothy J. Wilmott.