Boyd Gaming to acquire Las Vegas assets of Cannery Casino Resorts

26 April 2016

(PRESS RELEASE) -- Boyd Gaming Corporation ("Boyd Gaming") today announced that it has entered into a definitive agreement to acquire the Las Vegas assets of Cannery Casino Resorts, LLC, ("Cannery") for total cash consideration of $230 million.

Under terms of the agreement, Boyd Gaming will acquire Cannery Casino and Hotel, located in North Las Vegas, and Eastside Cannery Casino & Hotel, located adjacent to Sam's Town Hotel & Gambling Hall on Boulder Highway in the eastern part of the Las Vegas Valley. Together with the Company's recently announced acquisition of Aliante Casino Hotel and Spa in North Las Vegas, the Cannery transaction will expand Boyd Gaming's southern Nevada portfolio to 12 properties.

"This transaction is a great tuck-in acquisition that further expands our presence in the Las Vegas Locals market at an attractive price," said Keith Smith, President and Chief Executive Officer of Boyd Gaming. "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. We look forward to welcoming Cannery's team members and customers to the Boyd Gaming family."

With expected synergies and operating refinements, Boyd Gaming projects that the Cannery assets will generate a combined $32 million in EBITDA during the company's first full year of ownership, giving the transaction an implied multiple of 7.2 times EBITDA. The company expects the acquisition to be cash flow positive and accretive to earnings per share in its first full year of ownership.

Located near Interstate 15 and Craig Road in North Las Vegas, Cannery Casino features an 80,000-square-foot casino, a 200-room hotel, five restaurants and five bars, a 30,000-square-foot entertainment venue, and a 14-screen movie theater. Cannery Casino has no competing gaming property within a five-mile radius, and is located approximately seven miles from Aliante.

Eastside Cannery has a 64,000-square-foot casino, 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. The property is located directly south of Sam's Town at the intersection of Boulder Highway and Harmon Avenue.

The transaction is expected to close in the third quarter, subject to the satisfaction of customary closing conditions and the receipt of all required regulatory approvals, including the Nevada Gaming Commission and the Federal Trade Commission. The transaction will be funded with cash on hand.

Morrison & Foerster LLP served as legal advisor to Boyd Gaming for the transaction. Stifel served as exclusive financial advisor and Latham & Watkins LLP served as legal advisor to Cannery.

The Company will discuss the transaction during its scheduled first-quarter 2016 earnings conference call on Tuesday, April 26 at 5 p.m. Eastern.

Related Links
Boyd Gaming Gaming Vendor Information
Sam's Town Las Vegas Details
Cannery Casino & Hotel Details
Aliante Casino & Hotel & Spa Details

Featured Vendors
Casino Network
GamblersPick
Casino Network
20+ years experience selling refurbished slot machines, parts & glass for all major brands
GamblersPick
Share & Read other players' reviews! A top player community-driven portal for online casinos.
Goldfinger Monitors
OCR - Online Casino Reports
Goldfinger Monitors
Innovative touch-screen solutions - vibrant lighting, high-def imagery, bright, bold colors
OCR - Online Casino Reports
Delivers highly targeted casino traffic from over 70 countries! Get your casino listed today at OCR!
Casino City Press
Regulatory Management Counselors, PC
Casino City Press
A leading publisher and distributor of casino and gaming business data and market research reports.
Regulatory Management Counselors, PC
Over 45 years of experience serving the legal and regulatory needs of casino industry clients
Oklahoma Indian Gaming Association (OIGA) Conference
AmericanChecked
Oklahoma Indian Gaming Association (OIGA) Conference
The biggest little show in Indian gaming! Save the date: August 12-14, 2024 Oklahoma City
AmericanChecked
Background checks for the gaming industry with key & non-key packages & fingerprinting solutions
Indian Gaming Tradeshow & Convention
Casino Trac - Table Trac, Inc.
Indian Gaming Tradeshow & Convention
The largest gathering of tribal leaders and casino executives in the United States
Casino Trac - Table Trac, Inc.
CasinoTrac™ is a full CMS platform, operating in 225 locations, across 13 countries, since 1995.
Top One Tech Limited
Slot Machines Unlimited
Top One Tech Limited
GLOBAL TOUCH SOLUTION PARTNER OF CHOICE,10+ years OEM manufacturing,100+ thousand units application
Slot Machines Unlimited
Exporter of IGT, Williams, AVP, Trimline, Aristocrat, Konami, Bally, & parts over 20 yrs experience
TribalHub
House Tech Ads
TribalHub
25th Annual TribalNet Conference Sept 16-19, 2024 Westgate Las Vegas
House Tech Ads
Drive quality casino-gambling traffic to your brand from over 70 countries from our premium assets!
Sunkist Graphics, Inc.
Dable Advisory & Consulting Services
Sunkist Graphics, Inc.
Specializing in the creation of best-of-breed gaming graphics - slot glass, sign faces, and more
Dable Advisory & Consulting Services
Advisory & consulting services services for Indigenous entrepreneurs, businesses & organizations
Betson Imperial Parts & Service
Casino Schedule Ease
Betson Imperial Parts & Service
Your one stop shop for all your gaming and OEM needs!
Casino Schedule Ease
Full Featured & customizable for the complex scheduling needs of table games & other casino depts
Kallop
Kallop
Reward every play like a VIP with exclusive luxury brands at affordable prices.


Your Guide to 14,894 Gaming Industry Suppliers