Pinnacle Entertainment to acquire rival Ameristar Casinos for $869 million

Monday, 7 January 2013

Regional casino operator Pinnacle Entertainment announced it agreed to acquire rival Ameristar Casinos for $869 million in a merger between two Las Vegas-based companies.

The deal, which is subject to regulatory approval in nine states, would more than double the size of Pinnacle Entertainment, giving the company 17 gaming properties plus one resort now under development. As part of the deal, Pinnacle will acquire Ameristar’s two casinos in the Northern Nevada community of Jackpot near the state’s border with Idaho.

The transaction is expected to close in mid-2013. At the close of the deal Pinnacle would operate more than 5,000 hotel rooms, 23,500 slot machines, 640 table games and employ almost 16,000 workers.

Pinnacle said the combined company would have generated revenue of $2.4 billion and cash flow of $689 million for the 12 months that ended Sept. 30.

The merger places Pinnacle in direct competition with regional casino rivals Penn National Gaming Corp. and Boyd Gaming Corp.

Author: Editor

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