LAS VEGAS, April 25, 2016 /PRNewswire/ -- Boyd Gaming
Corporation ("Boyd Gaming") (NYSE: BYD) today announced that it has
entered into a definitive agreement to acquire the Las Vegas assets of Cannery Casino Resorts,
LLC, ("Cannery") for total cash consideration of $230 million.
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
in the eastern 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 12
properties.
"This transaction is a great tuck-in acquisition that further
expands our presence in the Las Vegas Locals market at an
attractive price," said Keith Smith,
President and Chief Executive Officer of Boyd Gaming.
"Together, Aliante and Cannery Casino will give us a strong
foothold in North Las Vegas, one
of the fastest-growing areas in the Las Vegas Valley. And we
will 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 over the last two years, and this
acquisition will broaden our portfolio in this promising
market. We look forward 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 during the
Company's first full year of ownership, giving the transaction an
implied multiple of 7.2 times EBITDA. The Company expects the
acquisition 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 theater. Cannery Casino has no competing
gaming property within a five-mile radius, and is located
approximately seven miles from Aliante.
Eastside Cannery has a 64,000-square-foot casino, more than 300
hotel rooms, five restaurants and four bars, 20,000 square feet of
meeting and ballroom space, and a 250-seat entertainment
lounge. The property is located directly south of Sam's Town
at the intersection of Boulder Highway and Harmon Avenue.
The transaction is expected to close in 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
will be funded with cash on hand.
Morrison & Foerster LLP served as legal advisor to Boyd
Gaming for the transaction. Stifel served as exclusive
financial advisor and Latham & Watkins LLP served as legal
advisor to Cannery.
The Company will discuss the transaction during its scheduled
first-quarter 2016 earnings conference call on Tuesday, April 26 at 5:00
p.m. Eastern.
About Boyd Gaming
Headquartered in Las Vegas, Boyd Gaming Corporation (NYSE:
BYD) is a leading diversified owner and operator of 22
gaming entertainment properties located in Nevada, Illinois, Indiana, Iowa, Kansas,
Louisiana, Mississippi and New Jersey. Boyd Gaming
press releases are available at www.prnewswire.com.
Additional news and information on Boyd Gaming can be found at
www.boydgaming.com.
Forward-looking Statements
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of
1934, as amended. Such statements contain words such as "may,"
"will," "might," "expect," "believe," "anticipate," "could,"
"would," "estimate," "continue," "pursue," or the negative thereof
or comparable terminology, and include (without limitation)
statements regarding the transactions contemplated by the
definitive agreement, Boyd Gaming's expectations regarding the
timing of closing, the potential benefits to be achieved from the
acquisition of the Cannery assets, including EBITDA expectations,
expectations regarding the Cannery assets to be cash flow positive
and accretive to Boyd Gaming's earnings, the expected cost
synergies at the properties, and any statements or assumptions
underlying any of the foregoing. These forward-looking
statements are based upon the current beliefs and expectations of
management and involve certain risks and uncertainties, including
(without limitation) the possibility that the transactions
contemplated by the definitive agreement will not close on the
expected terms (or at all), or that Boyd Gaming is unable to
successfully integrate the acquired assets or realize the expected
synergies or that the properties will be cash flow positive or
accretive to Boyd Gaming's earnings as anticipated; litigation,
antitrust matters or the satisfaction or waiver of any of the
closing conditions that could delay or prevent the closing; and
changes to the financial conditions of the parties, or the credit
markets, or the economic conditions in the areas in which they
operate. Additional factors are discussed in "Risk Factors" in Boyd
Gaming's Annual Report on Form 10-K for the year ended December 31, 2015, and in Boyd Gaming's other
current and periodic reports filed from time to time with the
Securities and Exchange Commission. All forward-looking
statements in this press release are made as of the date hereof,
based on information available to Boyd Gaming as of the date
hereof, and Boyd Gaming assumes no obligation to update any
forward-looking statement.
We do not provide a reconciliation of forward-looking non-GAAP
financial measures due to our inability to project special charges
and certain expenses.
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SOURCE Boyd Gaming Corporation