Boyd Gaming to Buy Two Cannery Casino Properties in Las Vegas
26 April 2016 - 8:50AM
Dow Jones News
Boyd Gaming Corp. is buying Cannery Casino Resorts' Las Vegas
operations for $230 million, strengthening its position in
fast-growing North Las Vegas.
The deal comes less than a week after the casino operator agreed
to buy Aliante Casino Hotel and Spa for $380 million. Both deals
are to be added to the company's Las Vegas Locals segment, which in
2015 accounted for 28% of Boyd's net revenue, up from 22% a year
earlier.
The Cannery deal, expected to close in the third quarter,
includes the Cannery Casino Hotel in North Las Vegas and Eastside
Cannery Casino and Hotel in the eastern part of Las Vegas Valley
near Boyd's Sam's Town.
Boyd expects the Cannery acquisition will add $32 million in
earnings before interest, tax, depreciation and amortization during
the company's first full year of ownership.
Privately held Cannery had previously agreed to sell its other
location, Pittsburgh-area Meadows Racetrack and Casino, to Gaming
& Leisure Properties Inc. That deal is expected to close in the
second half of the year.
Boyd shares, up 51% over the past 12 months, edged up 0.2% to
$20.23 in after-hours trading.
Write to Maria Armental at maria.armental@wsj.com
(END) Dow Jones Newswires
April 25, 2016 18:35 ET (22:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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