US-based casino operator Boyd Gaming is to acquire Peninsula Gaming in a deal worth $1.45bn.
The move will see Boyd expand its existing portfolio of casinos by adding five properties in what it described as some of the country’s strongest growth regions – Kansas Star Casino, Kansas, Diamond Jo Casino and Diamond Jo Worth in Iowa and Evangeline Downs Racetrack and Casino and Amelia Belle Casino in Louisiana.
“Acquiring Peninsula Gaming is a transformative transaction that fits perfectly into our growth strategy by expanding our company’s scale, diversifying our platform, strengthening our financial profile and generating meaningful value for our shareholders,” said Keith Smith, president and CEO of Boyd Gaming. “The Peninsula properties are a strong fit for us, as they are well managed and operate in resilient markets in the midwest and south.
“We are paying an attractive multiple for high-quality, high-margin assets. The properties operate in locations with limited gaming supply and stable tax and regulatory environments, resulting in attractive EBITDA margins. Their management teams have considerable knowledge of their markets and have shown they are able to operate efficiently without compromising the guest experience.”
Boyd Gaming operates 17 gaming properties across the country, including Nevada and New Jersey.
