Penn National Gaming Inc., a key gaming and racing operator within the US, has agreed to buy fellow casino company Pinnacle Entertainment in a deal worth $2.8bn.
Penn National will acquire Pinnacle’s 16 gaming and entertainment facilities across the US, providing the company with a total number of 41 properties, allowing for both a greater geographical and operational diversity.
“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 Timothy Wilmott, CEO of Penn National Gaming.
The combined property portfolio will include the L'Auberge Casino & Hotel, Baton Rouge; L'Auberge Casino Resort, Lake Charles; Boomtown Casino & Hotel, New Orleans; and Boomtown Casino and Hotel, Bossier City.
“We believe the combination will produce an even stronger gaming entertainment platform that builds on the individual accomplishments of both companies and benefits our collective team members, shareholders and guests,” said Anthony SanFilippo, Chairman and CEO of Pinnacle Entertainment.
Following the deal, Penn National has announced that it will sell four Pinnacle properties to Boyd Gaming Corp for approximately $575mn.