Penn National Gaming completes $2.8B acquisition of Pinnacle
Penn National Gaming Inc. has completed the $2.8 billion acquisition of smaller rival Pinnacle Entertainment Inc., solidifying its position as the second-largest gaming company by properties in the U.S.
The Wyomissing, Pennsylvania-based company will now oversee 40 properties across 18 states, it said in a press release issued Monday. The company will operate nearly 9,000 hotel rooms and more than 49,000 gaming machines. Caesars Entertainment Corp. is the largest operator with nearly 50 properties in the U.S.
Penn National, which owns the Tropicana and M Resort, will now operate four casinos in Nevada, including the Horseshu and Cactus Pete’s on the Nevada-Idaho border off U.S. Highway 93 in Jackpot.
The company earlier sold four Pinnacle properties to Boyd Gaming in order to get approval for the takeover. Penn National management expects the enlarged company to save $100 million a year in costs.
Penn National cleared its last regulatory hurdle in the transaction on Oct. 3 when the deal was approved by the Nevada Gaming Commission.
Shares of Penn National fell 3.4 percent to $28.89, valuing the company at $2.6 billion.
Contact Todd Prince at 702-383-0386 or tprince@reviewjournal.com. Follow @toddprincetv on Twitter.
