Boyd Gaming to Buy Cannery Resorts in Vegas for $230 Millionby
Purchases bring company's properties in the market to 12
Deal is latest sign casinos catering to locals have rebounded
Boyd Gaming Corp. agreed to buy the Las Vegas assets of Cannery Casino Resorts LLC for $230 million, its second acquisition there in a week.
Boyd will acquire the Cannery Casino Hotel in North Las Vegas and the Eastside Cannery Casino & Hotel adjacent to its existing Sam’s Town, according to a statement Monday. Together with the recently announced acquisition of Aliante Casino Hotel & Spa in North Las Vegas, the purchases expand Boyd Gaming’s southern Nevada portfolio to 12 properties.
The deal is another sign that the so-called locals casino business, which caters to residents of Las Vegas, is back. Another operator targeting local players, Red Rock Resorts Inc., was scheduled on Monday to sell shares to the public for the first time since the company went private in a 2007 leveraged buyout. Casino revenue in the locals market climbed 2.3 percent to $2.15 billion last year, according to CBRE estimates.
“This transaction is a great tuck-in acquisition that further expands our presence in the Las Vegas locals market at an attractive price,” Keith Smith, Boyd’s chief executive officer, said in the statement.
Las Vegas attracted a record 42.3 million visitors last year, helping lift the city’s employment for the fifth year in a row. Some $13.9 billion in construction projects are planned in the market, Red Rock said in its offering documents.
With expected cost savings and operational changes, Boyd said the Cannery casinos should generate $32 million in earnings before interest, taxes, depreciation and amortization in their first full year under new ownership.