Penn National sheds Ohio casino in Pinnacle deal
Pinnacle Entertainment is being snapped up by Penn National in a deal worth about $2.8 billion as the gaming industry seeks to diversify and cut costs at the same time.
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. Belterra Park in Cincinnati is one, along with the Belterra Casino Resort in Florence, Indiana, and Ameristar St. Charles and the Ameristar Kansas City, both in Missouri. Boyd will pay $575 million for those assets.
Penn says the combined company will have 41 properties in North America, not including those acquired by Boyd. The company also expects about $100 million in annual cost savings as a result of the deal.
“The combined company will benefit from enhanced scale, additional growth opportunities and best-inclass operations, creating a more efficient integrated gaming company,” Penn CEO Timothy J. Wilmott said.
Penn National is the operator of Hollywood Casino Columbus, as well as another Ohio casino in Toledo. The company also operates two Ohio racinos, in Dayton and Youngstown.
Pinnacle Entertainment shares rose 24 cents, or 0.8 percent, to $31.19. Penn National shares dipped 66 cents, or 2.2 percent, to $29.03, and Boyd Gaming shares rose $2.44, or 7.6 percent, to $34.77.