Acquisition of Indiana Casino Parent Complete
Two Indiana casinos are now under new ownership. Penn National Gaming Inc. (Nasdaq: PENN) has completed its $2.8 billion acquisition of Las Vegas-based Pinnacle Entertainment Inc. (Nasdaq: PNK), which previously owned Ameristar Casino and Hotel in East Chicago and Belterra Casino Resort in Florence.
As a result of the deal, Penn National has taken over control of Ameristar Casino. However, in connection with the deal, Las Vegas-based Boyd Gaming Corp. (NYSE: BYD) has acquired four Pinnacle properties, including the Belterra Casino Resort, for nearly $564 million.
The acquisition was first announced in December. Timothy Wilmott, chief executive officer of Penn National, calls the deal a "significant milestone" in the company's 24-year history.
"We are pleased to welcome Pinnacle’s team members to Penn National," Wilmott said in a news release. "We expect to realize approximately $100 million in cost-related synergies and expect to generate further revenue synergies through efforts such as monetizing our database; cross marketing our properties; sports wagering; and further leveraging our social gaming platform."
Penn National now operates 40 facilities throughout the country.