JACKPOT, Nevada (KMVT/KSVT) — Cactus Petes’ parent company recently announced a definitive agreement to be bought by another gaming company for $2.8 billion in cash and stock transactions.
Pinnacle Entertainment announced its acquisition by Penn National Gaming in mid-December.
According to a news release, Pinnacle owns 16 gaming and entertainment facilities in 11 jurisdictions. Boyd Gaming Corporation plans to obtain four of the properties as part of a divestiture in the acquisition. Those properties include Ameristar properties in St. Charles and Kansas City, Missouri, along with Belterra Casino Resort in Florence, Indiana, and Belterra Park in Cincinnati, Ohio.
Penn National said the acquisition will bring the company greater operational and geographic diversity and bring its properties up to 41 in 20 jurisdictions throughout North America.
A news release said, “The transaction is expected to generate $100 million in annual run-rate cost synergies following integration and is anticipated to be immediately accretive to free cash flow in the first year.”
Anthony Sanfilippo, chairman and CEO of Pinnacle Entertainment, said the company employs about 16,000 people.
“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,” Sanfilippo said in the news release.
Timothy J. Wilmott, CEO of Penn National Gaming, said the company looks forward to adding Pinnacle’s employees to its team.
“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,” Wilmott said.
Read the full news release for investor information.
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