Boyd Gaming is buying the two casinos owned by Cannery Casino Resorts for $230m.
Boyd will acquire Cannery Casino Hotel, located in North Las Vegas, and Eastside Cannery Casino and 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.
Keith Smith, President and Chief Executive Officer of Boyd Gaming, said: “This transaction is a great tuck-in acquisition that further expands our presence in the Las Vegas Locals market at an attractive price. 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$32m 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