Pinnacle sale complete
Pennsylvania-based Penn National Gaming’s $2.8 billion acquisition of Pinnacle Entertainment is officially done, officials said Monday.
The deal expands Penn National’s gambling properties from 29 to 41, including four Louisiana properties leased and operated by Pinnacle. They include L’Auberge Casino Resort in Lake Charles, L’Auberge Casino and Hotel in Baton Rouge, Boomtown Casino and Hotel New Orleans, and Boomtown Casino and Hotel Bossier City.
The Louisiana Gaming Control Board approved the purchase in July. Tim Wilmont, Penn National CEO, said during the board meeting that the sale will make the company "the largest regional gaming operator in the United States" and will bring about $5 billion in annual revenue.
The L’Auberge or Boomtown properties will not be rebranded, according to Wilmont.
Part of the deal calls for Penn National to sell four Pinnacle properties — two in Missouri and one each in Indiana and Ohio — to Las Vegas-based Boyd Gaming Corp. for about $575 million in cash. Penn National already has properties in those markets.
The Gaming Control Board approved a deal in 2016 allowing Pinnacle to sell and lease back several casinos to Gaming and Leisure Properties Inc., a real estate investment trust company and an offshoot of Penn National. Included in the sale were the L’Auberge and Boomtown Casino properties. The deal between Pinnacle and GLPI requires Pinnacle to pay GLPI $377 million in annual rent to operate the gambling facilities.