BILOXI, MS (WLOX) - IP Casino Resort Spa in Biloxi will soon have a new owner. Boyd Gaming Corporation announced this morning that it has entered into a definitive agreement to acquire the IP from Imperial Palace of Mississippi, LLC, and Key Largo Holdings, LLC, for $278 million in cash.
Following closing, Boyd Gaming plans to invest approximately $44 million in certain capital improvement projects at the property.
The Company will also contribute $10 million at closing to the Engelstad Family Foundation, which will be distributed over the next five years to local and regional charitable organizations in the Biloxi area.
"This acquisition is an excellent fit to our existing business and provides further geographic diversification by giving us a presence in a leading regional destination market," said Keith Smith, President and Chief Executive Officer of Boyd Gaming.
"In conjunction with our divestiture of Dania Jai-Alai, this is another important step toward achieving our strategic goal of significantly strengthening our balance sheet. We will continue to look for additional acquisitions that are complementary to our current operations, deliver a solid return for our shareholders, and are priced appropriately."
Boyd Gaming already owns properties in the southeast, including Sam's Town Hotel & Gambling Hall in Tunica, Mississippi. In Louisiana, Boyd owns Treasure Chest Casino in Kenner, Sam's Town Hotel & Casino in Shreveport, and Delta Downs Racetrack Casino Hotel in Vinton.