Boyd Gaming completes $1.45 billion acquisition of Peninsula Gaming
In the last 13 months, Boyd Gaming Corp. has added six casinos to the company's portfolio, strengthening both its Midwest and Southern presence.
Tuesday's completion of a $1.45 billion acquisition of Peninsula Gaming gives the company two new markets - Iowa and Kansas - while adding to an already solid base in Louisiana.
"It's an opportunity to really expand in the Midwest. That's where business is strongest right now," Boyd Gaming Chief Executive Officer Keith Smith said Tuesday. "This helps geographically diversify our portfolio."
The purchase of Peninsula comes 13 months after closing a $278 million purchase of the IP Biloxi in Mississippi from the Engelstad Family Foundation.
"We've been busy," Smith said. "Our next step is to focus on 2013 and to integrate these new properties into the company."
Last month, Smith said the Las Vegas-based company expects more than two-thirds of its cash flow to come from its regional markets.
Boyd Gaming now operates 22 gaming properties in eight states - Nevada, New Jersey, Illinois, Indiana, Iowa, Kansas, Louisiana and Mississippi.
In Las Vegas, Boyd Gaming operates three downtown casinos, the three Coast Casinos brands and Sam's Town. Boyd Gaming owns 50 percent of the Borgata in Atlantic City and manages the hotel-casino.
Analysts didn't have much comment on the completion of the Peninsula acquisition, which was originally announced in May. The investment community was mostly positive about the deal because of the reach Boyd Gaming will now have.
Boyd Gaming shares rose 1 cent, or 0.19 percent, Tuesday to close at $5.23 on the New York Stock Exchange. In after-hours trading, Boyd Gaming shares rose 7 cents, or 1.34 percent, to reach $5.30 by 5 p.m. PST.
The closing of the transaction gives Boyd Gaming more than 25,000 employees nationwide.
The ownership of Peninsula Gaming left after the transaction closed, but property managers and the company's chief operating officer remained in place.
"Boyd Gaming and Peninsula share very similar cultures and business models," Smith said.
In Kansas, the Kansas Star in Mulvane, Kan., has been open for 11 months and has generated $158.8 million in gaming revenue through October, according to the Kansas Lottery Commission.
The casino is scheduled to move into a larger, permanent facility in December with the temporary casino being converted into a 5,000-seat events center.
In Louisiana, Boyd Gaming will have five casinos - three riverboat properties and two racetrack casinos.
"Louisiana is a good market for us," Smith said. "It's been good to the company."
Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871.
Follow @howardstutz on Twitter.
