April 20, 2016 - 5:18 pm
Casino operator Boyd Gaming Corp. is close to an agreement to buy Cannery Casino Resorts LLC, in a deal that will value the privately held U.S. company at between $225 million and $240 million, according to people familiar with the matter.
One of Cannery Casino Resorts’ two Las Vegas locations — the Cannery and Eastside Cannery — would give Boyd a strong foothold in the fast-growing north area of the city, which is emerging as a hub for technology start-ups, attracting affluent professionals with money to gamble.
An agreement between Boyd and Cannery Casino Resorts could come within weeks, the people said, asking not to be named because the matter was private.
Contact on Wednesday by the Las Vegas Review-Journal, Boyd Gaming Vice President of Corporate Communications David Strow said the company doesn’t comment on rumors or speculation.
Representatives for the Cannery could not immediately be reached for comment by the RJ.
Established in 2001, Cannery Casino Resorts is owned by privately held casino operator Millennium Gaming Inc, a subsidiary of investment firm Oaktree Capital Management, and a subsidiary of Australian gaming company Crown Resorts Ltd.
Crown Resorts and Millennium Gaming couldn’t immediately be reached for comment. An Oaktree representative declined to comment on the rumored negotiations.
Cannery Casino Resorts was founded by William Wortman, a former president and chief operating officer of Caesars Tahoe, and former president of Primadonna Resorts Inc. William Paulos. The two UNLV alumni act as co-principals of the company.
The sale of the Pennsylvania property simplified Cannery’s capital structure, paving the way for a potential sale of the Nevada properties.
Founded in 1975 by Bill Boyd, Boyd Gaming, which has a market capitalization of $2.4 billion, has grown into an owner and operator of 22 casino and hotel properties in eight U.S. states.
Boyd’s portfolio includes the Main Street Station, Fremont and California hotels and casinos in downtown Las Vegas.
The company also operates Sam’s Town, Suncoast, Gold Coast and Orleans in greater Las Vegas as well as the Eldorado and Joker’s Wild Casino in Henderson.
Boyd, which saw revenue and earnings grow in 2015, is investing millions into upgrades and renovations to nongaming areas of its Las Vegas and regional properties.