Pinnacle Entertainment, owner of Boomtown, to be bought in $2.8 billion deal
BOSSIER CITY, LA (KSLA) - Bossier City's Boomtown Casino & Hotel will have a new owner now, that Pinnacle Entertainment has announced that Penn National Gaming, Inc. has bought them out.
Penn National bought the company in a cash and stock transaction for $2.8 billion, according to a news release.
"We anticipate the deal will close in the second half of 2018 and until then it's completely business as usual from a customer and an employee perspective," said Eric Eric Schippers, senior vice president of Public Affairs & Government Relations for Penn National. "We're delighted to be acquiring 4 properties in Louisiana and excited to be adding Pinnacle's talented team members in Bossier City, New Orleans, Lake Charles and Baton Rouge to our Penn National Gaming family."
Other properties in Louisiana owned by Pinnacle Entertainment include Boomtown Casino & Hotel New Orleans, L'Auberge Casino Resort Lake Charles and L'Auburge Casino & Hotel Baton Rouge.
A news release from Pinnacle Entertainment first announced the possible buy out on Nov. 30.
""By combining our highly complementary portfolios and similar operating philosophies, we will be able to leverage the strengths of both our companies and create an unparalleled experience for our regional gaming customers, while generating significant value for our shareholders and business partners," said Timothy J. Wilmott, chief executive officer of Penn National Gaming, in a news release.
In Mississippi, Pinnacle Entertainment also owned the Ameristar Casino Hotel.
"The combined company will benefit from enhanced scale, additional growth opportunities and best-in-class operations, creating a more
efficient integrated gaming company," WIlmott said. "Going forward, we will have the financial and operational flexibility to further execute on our strategic objectives, while maintaining our track record of industry-leading profit margins and generating significant cash flow to reduce leverage over time. We (Penn National) look forward to welcoming Pinnacle's talented employees to our team and to further enhancing our status as North America's leading regional gaming operator."
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