Boyd Gaming Corporation has entered right into a definitive agreement to procure the Las Vegas assets of Cannery Casino Resorts, LLC for total cash consideration of $230 million. This deal comes at the heels of the company’s $380 million purchase of Las Vegas-based Aliante Casino Hotel and Spa. 

Under terms of the agreement, Boyd Gaming will acquire Cannery Casino Hotel, located in North Las Vegas, and Eastside Cannery Casino and Hotel, located adjacent to Sam's Town Hotel & Gambling Hall on Boulder Highway within the eastern a part of the Las Vegas Valley.  Together with the company's recently announced acquisition of Aliante Casino Hotel and Spa in North Las Vegas, the Cannery transaction will expand Boyd Gaming's southern Nevada portfolio to twelve properties.

"This transaction is a smart tuck-in acquisition that further expands our presence within the Las Vegas Locals market at a beautiful price," said Keith Smith, president and chief executive officer of Boyd Gaming.  "Together, Aliante and Cannery Casino will give us a robust foothold in North Las Vegas, one of the vital fastest-growing areas within the Las Vegas Valley.  And we can have unique synergy opportunities at Eastside Cannery, given its close proximity to Sam's Town.  Our southern Nevada assets have delivered the strongest revenue growth in our company during the last two years, and this acquisition will broaden our portfolio on this promising market.  We look ahead to welcoming Cannery's team members and customers to the Boyd Gaming family."

With expected synergies and operating refinements, Boyd Gaming projects that the Cannery assets will generate a combined $32 million in EBITDA through the company's first full year of ownership, giving the transaction an implied multiple of 7.2 times EBITDA.  The company expects the purchase to be cash flow positive and accretive to earnings per share in its first full year of ownership.

Located near Interstate 15 and Craig Road in North Las Vegas, Cannery Casino features an 80,000-square-foot casino, a 200-room hotel, five restaurants and five bars, a 30,000-square-foot entertainment venue, and a 14-screen movie show.  Cannery Casino has no competing gaming property within a five-mile radius, and is found approximately seven miles from Aliante.

Eastside Cannery has a 64,000-square-foot casino, greater than 300 hotel rooms, five restaurants and 4 bars, 20,000 square feet of meeting and ballroom space, and a 250-seat entertainment lounge.  The property is found directly south of Sam's Town on the intersection of Boulder Highway and Harmon Avenue.

The transaction is predicted to near within the third quarter, subject to the satisfaction of customary closing conditions and the receipt of all required regulatory approvals, including the Nevada Gaming Commission and the Federal Trade Commission. The transaction could be funded with cash on hand. 

Read More... [Source: Gaming Industry News]