Penn National Gaming, the slot machine operator in 29 venues across 17 jurisdictions in the US, has acquired the Margaritaville Resort Casino in Louisiana for US$115m in cash.
Timothy J. Wilmott, Penn National’s CEO said: “We are partnering with VICI Properties to structure this tuck-in acquisition of Bossier City’s newest casino resort, which is consistent with our criteria for transactions that are accretive to free cash flow, strategically diversify our revenue and operating base and present well defined paths to the realisation of significant synergies. With a purchase multiple of 5.5x trailling 12 months’ adjusted earnings before interest, taxes, depreciation, amortisation and management fees which we believe declines to below 5.0x with synergies, Penn National believes this transaction further supports our efforts to enhance shareholder value.”
Built in 2013, Margaritaville Resort Casino is one of the premier venues for gaming, lodging, dining and entertainment experiences in Northern Louisiana. The property features 26,500sq.ft of casino space, 395 hotel rooms, an island-style escape theme, six restaurants and food and beverage outlets, a 15,000sq.ft 1,000-seat theatre and 9,500sq.ft of meeting space. Margaritaville Resort Casino generated adjusted EBITDA of approximately $44m for the 12-month period ended March 31, 2018.
