The Associated Press has reported that under the deal, Penn National will assume the existing master lease and Pinnacle's existing lease for the Meadows Casino and Racetrack in Pennsylvania.
Following the acquisition of Pinnacle and the planned divestiture of four of its properties to Boyd Gaming Corporation, Penn National will have a combined 41 properties in 20 jurisdictions throughout North America, according to a press release.
The transaction is expected to generate US$100 million in annual run-rate cost synergies following integration and is anticipated to be immediately accretive to free cash flow in the first year, the statement said.
“By combining our highly complementary portfolios and similar operating philosophies, we will be able to leverage the strengths of both our companies and create an unparalleled experience for our regional gaming customers, while generating significant value for our shareholders and business partners,” said Timothy J. Wilmott, Chief Executive Officer of Penn National.
Upon completion of the transaction Penn National and Pinnacle shareholders will hold 78% and 22%t, respectively, of the combined company's outstanding shares. The companies expect the transaction to close in the second half of 2018, the press release said.
Source: GMB / The Morning Call
