Boyd Gaming Joins Forces with Peninsula Gaming

The popular and well-regarded US casino entertainment brand, Boyd Gaming, has finalized a deal with Peninsula Gaming LLC to purchase the company for $1.45 billion. Boyd Gaming hopes that the deal will help it to double its sales and grow its position within the gambling industry and in the online casino games market. Based in Las Vegas, Boyd Gaming Corporation is the owner and operator of seventeen top rated online casinos and casinos in Nevada, New Jersey, Mississippi, Illinois, Indiana and Louisiana.

Keith Smith, President and Chief Executive Officer of Boyd Gaming commented,  “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. 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 anticipate this transaction will be immediately accretive to earnings and significantly increase our free cash flow.”

Smith went on to point out, “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 earnings before interest, tax, depreciation and amortization margins. Their management teams have considerable knowledge of their markets and have shown they are able to operate efficiently without compromising the guest experience.”

As a result of the acquisition, which is likely to close by the end of 2012, Boyd will add an additional five casinos to its portfolio. They include one in Kansas, two in Iowa and two in Louisiana.