In light of recent market speculation, Penn National Gaming has confirmed it is engaged in discussions with Pinnacle Entertainment regarding a potential business combination, whereby Penn National would acquire Pinnacle in a cash and stock transaction.
The company said: “These discussions may or may not lead to any transaction, and the Company does not intend to comment further on market speculation or disclose any developments unless and until it otherwise deems further disclosure is appropriate or required. Additionally, there can be no assurance that an agreement providing for a transaction will be reached, or if an agreement is reached, that a transaction will be completed. Any transaction would be subject to the approval of the two companies’ boards, regulatory and shareholder approvals, as well as other conditions.”
Penn National Gaming already owns 29 facilities in 17 jurisdictions, including California, Florida, Illinois, Indiana, Kansas, Maine, Massachusetts, Mississippi, Missouri, Nevada, New Jersey, New Mexico, Ohio, Pennsylvania, Texas, West Virginia, and Ontario, Canada. At September 30, 2017, in aggregate, Penn National Gaming operated approximately 36,700 gaming machines, 820 table games and 4,800 hotel rooms.
Pinnacle Entertainment owns and operates 16 gaming entertainment businesses, 730 gaming tables and 24,000 slots located in Colorado, Indiana, Iowa, Louisiana, Mississippi, Missouri, Nevada, Ohio and Pennsylvania. Its third quarter revenue was up eight per cent to $647.4m increasing by $52.2m year on year. Its brands include Ameristar, Belterra and Boomtown.
Its most profitable is also the most recent to open in L’Auberge. In October it generated GGR of $13.3m in revenue.