Equity firm offers to buy MGM’s share of Borgata
Los Angeles-based private equity firm Leonard Green & Partners has offered to buy MGM Resorts International's 50 percent stake in Atlantic City's Borgata, according to Bloomberg News Service.
MGM said last week it received an offer for its ownership in the Borgata that will generate proceeds of about $250 million. The company didn't name the buyer. Bloomberg News said sources declined to be identified because the deliberations aren't public.
Boyd Gaming Corp., the operator and half-owner of Borgata, has the right to match Leonard Green's bid and said in a regulatory filing Monday that the company is evaluating its options.
A spokesman for Leonard Green declined comment.
The buyout firm, founded in 1989, manages about $9 billion and has holdings in fitness club operator Equinox, Whole Foods Market Inc. and Sports Authority, according to its Website.
The firm bid unsuccessfully for the M Resort in partnership with the founding Marnell family, who spent about $1 billion building the property. Penn National Gaming won the auction, agreeing to pay $230.5 million for about $860 million in M Resort debt.
