Penn National places $2.8 billion bet on Pinnacle Entertainment

Penn National places $2.8 billion bet on Pinnacle Entertainment

BILOXI, MS (WLOX) - The owners of the Hollywood Casino in Bay St. Louis and Boomtown Casino in Biloxi are broadening their portfolio. Penn National Gaming will buy Pinnacle Entertainment. The purchase price announced Monday is more than $2.8 billion.

Besides the two South Mississippi casino resorts, Penn National operates gambling establishments in 15 other states and Canada.  This deal will 12 more casinos currently run by Pinnacle.

In a separate deal, Boyd Gaming will take over four of Pinnacle's properties that aren't included in the Penn deal. Those casino resorts are in Missouri, Ohio and Indiana. A news release posted on the Pinnacle Entertainment website says that transaction is worth $575 million.

Timothy Wilmott is the CEO of Penn National Gaming. "The combined company will benefit from enhanced scale, additional growth opportunities and best-in-class operations, creating a more efficient integrated gaming company," Wilmott said in the news release. "Going forward, we will have the financial and operational flexibility to further execute on our strategic objectives, while maintaining our track record of industry-leading profit margins and generating significant cash flow to reduce leverage over time. We look forward to welcoming Pinnacle's talented employees to our team and to further enhancing our status as North America's leading regional gaming operator."

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