Penn National Gaming Inc. a United States company which operate and has ownership of gaming and racing facilities across the States announced it had agreed to buy Tropicana Las Vegas Casino Hotel Resort from it largest shareholder Onex znd Alex Yemenidjian for the sum of $360 million. The acquisition which is intended to be founded through an expansion of it existing credit facilities and cash in hand will give Penn National Gaming Inc. strong presence on Las Vegas Strip.
Mr. Timothy Wilmot, CEO of Penn National Gaming, while commenting said,
“The planned acquisition of Tropicana Las Vegas establishes a strong presence on the Las Vegas Strip for Penn National Gaming, fulfilling an important long-term strategic objective for the Company. With a $360 million acquisition cost, we believe we have structured a prudent transaction to own and operate a premier Strip asset at an attractive price of entry. Tropicana Las Vegas is positioned to benefit from recent significant capital expenditures and includes 35 acres of land on one of the busiest and most famous intersections in Las Vegas. The property will also benefit from its proximity to the new 20,000-seat capacity MGM – AEG Arena scheduled to open in mid-2016.
Mr. Wilmort further said,
“Given our goal of leveraging Penn National’s database of nearly 3 million active regional gaming customers, we have spent the past several years reviewing an acquisition of numerous gaming assets in Las Vegas. The Tropicana is a quality facility that can serve as an attractive destination offering for current Penn National customers, which further enhances our strong competitive position in the regional gaming markets in which we operate across the United States. At the same time, we view this transaction as a strategic opportunity to create value for our shareholders by adhering to our focus on operating disciplines and careful deployment of our capital. The planned acquisition will also further diversify our property portfolio with another wholly-owned and operated asset”.
Just not too long ago the property has experience a major and rigorous renovation of many of it sectors to an estimated sum of $200 million. And among many other previous owner of the property which was build in 1957 are Ben Jaffer, Trans Texas Airway and Ramada Inn Inc.