Penn National Gaming, Inc. (PENN: Nasdaq) (the “Company,” or
“Penn National”) announced today that it entered into a definitive
agreement to acquire Illinois video gaming terminal (“VGT”)
operator Prairie State Gaming (“PSG”) in an all cash transaction.
One of the largest VGT route operators in Illinois, PSG’s
operations include more than 1,100 terminals across a network of
270 bar and retail gaming establishments throughout the State. For
the twelve-months ended June 30, 2015, PSG generated nearly $10
million in EBITDA (earnings before interest, taxes, depreciation
and amortization). The transaction, which is expected to be
immediately accretive to Penn National upon closing later this
quarter, is subject to regulatory and other customary approvals and
conditions.
Jay Snowden, Chief Operating Officer of Penn National Gaming,
commented, “The planned acquisition of PSG is consistent with our
proven long-term strategy for growth through accretive
acquisitions. PSG is one of Illinois’ most respected VGT operators,
with a strong track record of regulatory compliance and a
reputation for reliable around the clock service backed by one of
the industry’s most experienced teams. With its strong financial
position, PSG has also distinguished itself in the Illinois VGT
industry for its ability to quickly roll out new games to
customers.
“Penn National looks forward to adding our nearly two decades of
industry leading experience in marketing, player development and
operating electronic casino games in highly regulated
environments,” added Snowden. “We believe this acquisition will
provide us a solid platform for future growth in the Illinois VGT
market and potentially other states where this form of gaming is
authorized,” concluded Snowden.
John Canham, current acting General Manager at Hollywood Casino
at Kansas Speedway, will assume the newly created role of General
Manager of VGT Operations for Penn National, subject to customary
regulatory approvals. Mr. Canham will report directly to Ameet
Patel, Senior Vice President, Regional Operations for Penn
National.
Throughout his 36-year gaming industry career, Mr. Canham has
served in many diverse roles. Prior to assuming the role of acting
General Manager at Hollywood Casino at Kansas Speedway, he served
as Vice President of Casino Operations at the property beginning in
2014. Before that he was Director of Operations at Boomtown Biloxi
from 2008 to 2014, during which time he spent two years in a
corporate slot role with responsibility for negotiating Master
Purchase Agreements with slot manufacturers and other special
projects. Mr. Canham previously served in various roles at
Hollywood Casino Baton Rouge from 1994 to 2008 including Table
Games Manager and Slot Operations Manager. He began his career with
London Clubs in England and subsequently worked in a variety of
supervisory and management positions in a number of casinos
internationally, including Crystal Palace Casino in the Bahamas and
Casino Jasmine in Cyprus.
Rob Miller, founder and president of PSG, will remain with the
company as a strategic advisor and will be working closely with Mr.
Canham to ensure a smooth transition and to continue supporting
PSG’s retail gaming, bar, restaurant, and veteran organization
customers.
About Penn National Gaming
Penn National Gaming owns, operates or has ownership interests
in gaming and racing facilities with a focus on slot machine
entertainment. At June 30, 2015, the Company operated twenty-six
facilities in seventeen jurisdictions, including Florida, Illinois,
Indiana, Kansas, Maine, Massachusetts, Maryland, Mississippi,
Missouri, Nevada, New Jersey, New Mexico, Ohio, Pennsylvania,
Texas, West Virginia, and Ontario. At June 30, 2015, in aggregate,
Penn National Gaming’s operated facilities featured approximately
32,000 gaming machines, 760 table games and 3,100 hotel rooms.
About Prairie State Gaming
Prairie State Gaming (PSG) was founded by gaming entrepreneur
Rob Miller with financing from an affiliate of Och-Ziff Real
Estate. PSG is one of the top five largest terminal operators in
Illinois, with more than 1,100 VGTs across 270 bar and retail
gaming establishments in seven distinct geographic areas throughout
Illinois. PSG operates a portfolio of multi-title VGTs under
long-term placement agreements, while also providing a range of
ancillary amusement and gaming equipment to its customers.
Wells Fargo Securities is acting as financial advisor to PSG in
this matter.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. These statements can be identified by the use of forward
looking terminology such as “expects,” “believes,” “estimates,”
“projects,” “intends,” “plans,” “seeks,” “may,” “will,” “should” or
“anticipates” or the negative or other variations of these or
similar words, or by discussions of future events, strategies or
risks and uncertainties, including future plans, strategies,
performance, developments, acquisitions, capital expenditures, and
operating results. Actual results may vary materially from
expectations. These forward looking statements are inherently
subject to risks, uncertainties and assumptions about Penn National
Gaming and its subsidiaries, including risks related to required
regulatory approvals and other conditions to closing, the
successful integration of the acquisition, our ability to
successfully compete in the VGT market, our ability to retain
existing customers and secure new customers, risks relating to
municipal authorization of VGT operations and, accordingly, any
forward looking statements are qualified in their entirety by
reference to the factors discussed in the Company’s Annual Report
on Form 10-K for the year ended December 31, 2014, as well as any
subsequent Quarterly Reports on Form 10-Q and Current Reports on
Form 8-K, each as filed with the United States Securities and
Exchange Commission. The Company does not intend to update publicly
any forward-looking statements except as required by law. In light
of these risks, uncertainties and assumptions, the forward-looking
events discussed in this press release may not occur.
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version on businesswire.com: http://www.businesswire.com/news/home/20150731005408/en/
Penn National Gaming, Inc.Saul V. ReibsteinChief Financial
Officer610-373-2400orJCIRJoseph N. Jaffoni, Richard
Land212-835-8500penn@jcir.com
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