Boyd Gaming Corporation announced it has entered into an agreement with Cannery Casino Resort to aquire it’s Las Vegas assets.
The announcement which was made 25th of April, 2016 says the term of the agreement will see Boyd Gaming acquiring the two properties of Cannery Casino Resort in Las Vegas: the Cannery Casino Hotel in North Las Vegas and Eastside Cannery Casino and Hotel in the Eastern part of Las Vegas valley and to be able to do that Boyd Gaming will have to cough out about $230 million.
The annoucement further says that, together with the Company’s recently announced acquisition of Aliante Casino Hotel and Spa in North Las Vegas, the Cannery transaction will expand Boyd
Gaming’s southern Nevada portfolio to 12 properties.
With expected synergies and operating refinements, Boyd Gaming projects that the Cannery assets will generate a combined $
32 million in EBITDA during the Company’s first full year of ownership, giving the transaction an implied multiple of 7.2 times
EBITDA. The Company expects the
acquisition to be cash flow positive and accretive to earnings per share in its first full year of ownership.
The transaction is expected to close in the third quarter, subject to the satisfaction of customary closing conditions and the
receipt of all required regulatory approvals, including the Nevada Gaming Commission and the Federal Trade Commission. The
transaction will be funded with cash on hand.
Morrison & Foerster LLP served as legal advisor to Boyd Gaming for the transaction. Stifel served as exclusive financial advisor
and Latham & Watkins LLP served as legal advisor to Cannery.