Boyd Gaming Acquires Las Vegas Assets At Canary Casino Resort
Boyd Gaming Corporation (“Boyd Gaming”) today announced that it has finally agreed to acquire Las Vegas assets of Cannery Casino Resorts, LLC (“Cannery”) in exchange for a total of $230 million in cash.
Under the terms of the agreement, Boyd Gaming will acquire Cannery Casino & Hotel, located in North Las Vegas, and Eastside Cannery Casino & Hotel, adjacent to Sam’s Town Hotel & Gambling on the Boulder Highway east of the Las Vegas Valley. Along with the recently announced acquisition of Alliante Casino Hotel and Spa in North Las Vegas, the Cannery deal will expand Boyd Gaming’s southern Nevada portfolio to 12 properties.
“This deal is a great acquisition that further expands our presence in the Las Vegas regional market at an attractive price,” said Keith Smith, President and Chief Executive Officer of Boyd Gaming. “Alyante and Cannery Casino together will provide us with a strong foothold in North Las Vegas, one of the fastest-growing regions in the Las Vegas Valley. And given its proximity to Sam’s Town, we will have a unique synergy opportunity in Eastside Cannery. Our Southern Nevada assets have provided the strongest sales growth in our company over the past two years, and this acquisition will expand our portfolio in this promising market. We look forward to welcoming Cannery’s team members and customers to the Boyd Gaming family.”
Boyd Gaming expected Cannery Asset to generate a total of $32 million in EBITDA during the company’s first year of ownership, giving the transaction an implied multiple of 7.2 times EBITDA, amid synergies and improved operations. The company expects the acquisition to be cash flow positive and active in earnings per share in its first year of ownership.
Located near Interstate 15 and Craig Road in northern Las Vegas, Cannery Casino features an 80,000-square-foot casino, 200-room hotel, five restaurants, five bars, 30,000-square-foot entertainment venues, and 14 screen movie theaters. Cannery Casino has no competing gaming facilities within a five-mile radius and is located about seven miles from Alliante.
Eastside Cannery has 64,000 square feet of casinos, more than 300 hotel rooms, five restaurants and four bars, 20,000 square feet of meeting and ballroom space, and a 250-seat entertainment lounge. Accommodation is located at the intersection of boulder highway and Harmon Avenue south of Sam’s Town.
The transaction must meet conventional closing conditions and obtain all required regulatory approvals, including the Nevada Gaming Commission and the Federal Trade Commission, and is expected to close in Q3. The transaction funds will be raised with cash on hand.
Morrison & Foerster LLP served as legal counsel to Boyd Gaming for this transaction. Stifel served as exclusive financial advisor, and Latham & Watkins LLP served as legal counsel to Cannery. 슬롯