Boyd announces another Las Vegas casino acquisition

By David Cook
Boyd Gaming, which holds partial ownership of the Borgata Hotel Casino & Spa, is to acquire the Las Vegas assets of Cannery Casino Resorts for $230m.

Boyd currently owns and operates 22 gaming properties across eight US states and will now acquire Cannery Casino Hotel in North Las Vegas and Eastside Cannery Casino and Hotel, located in the eastern area of the Las Vegas Valley.

This will expand Boyd’s number of southern Nevada properties to 12 and follows last week’s announcement that it is to purchase the holding company of Aliante Casino Hotel and Spa for total net cash consideration of $380m.

It is estimated by Boyd that the Cannery assets will generate a combined $32m in EBITDA for its first full year of ownership, a multiple of 7.2 times EBITDA on the transaction.

The deal is expected to complete in the third quarter of this year and is subject to approval from the Nevada Gaming Commission and the Federal Trade Commission.

Payment for the acquisition will be funded with cash in hand.

Keith Smith, Boyd president and CEO, said: "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."

Boyd owns 50% of Atlantic City market leader Borgata, with MGM Resorts International holding ownership of the remaining 50%.

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