The Ohio Casino Control Commission and the Louisiana Gaming Control Board both recently approved Penn National Gaming Inc.’s $2.8 billion acquisition of Pinnacle Entertainment Inc. Other regulatory approvals still are required for the completion of the deal.
Timothy J. Wilmott, chief executive officer at Wyomissing, Pennsylvania-based Penn National, stated, “We thank the Ohio Casino Control Commission and the Louisiana Gaming Control Board for their thorough and diligent review of our applications and filings related to our pending transaction with Pinnacle Entertainment. Our progress with the regulatory approval process remains on track, and we continue to expect the transaction to be completed in the second half of this year.”
Wilmott added the purchase will make Penn National “the largest regional gaming operator in the United States. This transaction for the two companies is transformational. We’re excited about the quality of the assets and the people that are part of Pinnacle Entertainment.” Wilmott noted no significant personnel or other changes are planned, including “no rebranding” of the L’Auberge or Boomtown properties. Also, he said the acquisition will generate $5 billion in annual revenue.
With the latest approvals, eight gaming regulatory bodies have approved Penn National’s acquisition of Las Vegas-based Pinnacle Entertainment. In March, shareholders of both companies approved the proposed merger; more than 99 percent of all votes cast approved the transaction.
The deal was announced by both companies in December. It will boost Penn National from 29 to 41 properties, including four leased and operated by Pinnacle in Louisiana: L’Auberge Casino Resort in Lake Charles, L’Auberge Casino and Hotel in Baton Rouge, Boomtown Casino and Hotel New Orleans and Boomtown Casino and Hotel Bossier City.
Under the agreement, Penn National will sell four Pinnacle properties to Las Vegas-based Boyd Gaming Corporation for t $575 million, including two in Missouri and one each in Indiana and Ohio. Eric Schippers, Penn National senior vice president of public affairs, said that was required because Penn National already operates properties in those markets. Pinnacle shareholders will get $20 in cash per share and 0.42 shares of Penn National per Pinnacle share, Schippers said.
Pinnacle Entertainment Chief Executive Officer Anthony Sanfilippo said Penn National “has been terrific” throughout the merger process. “There’s not a better company, if we’re turning the company over to, than Penn National,” he said.
In April 2016 the Louisiana Gaming Control Board authorized Pinnacle to sell and lease back several casinos to Gaming and Leisure Properties Inc., a real estate investment trust company and an offshoot of Penn National. L’Auberge and Boomtown Casino were included in the deal, which requires Pinnacle to pay GLPI $377 million in annual rent to operate the casinos.
