Boyd buys Peninsula for $1.4 billion

Boyd Gaming Corp. agreed on Thursday to buy Peninsula Gaming for US$1.45 billion, adding five casinos all outside of Nevada.

The Las Vegas-based Boyd Gaming will fund the purchase of the Dubuque, Iowa-based Peninsula with US$200 million in cash and approximately $1.2 billion in debt at the Peninsula subsidiary. 

The properties Boyd will take ownership of include Kansas Star Casino near Wichita, Kansas; Diamond Jo Casino in Dubuque, Iowa; Diamond Jo Worth in Northwood, Iowa; Evangeline Downs Racetrack & Casino in Opelousas, Louisiana; and Amelia Belle Casino in Amelia, Louisiana. The Northwood, Iowa, property includes a 102-room Holiday Inn Express Hotel & Suites.

Under the terms of the transaction, Boyd Gaming is obligated to make an additional payment in 2016 should Kansas Star’s EBITDA exceed US$105 million in 2015. The additional payment would be 7.5 times additional EBITDA over US$105 million.

“Acquiring Peninsula Gaming is a transformative transaction that fits perfectly into our growth strategy by expanding our Company’s scale, diversifying our platform, strengthening our financial profile, and generating meaningful value for our shareholders,” said Keith Smith, Boyd’s president and CEO. “The Peninsula properties are a strong fit for us, as they are well-managed and operate in resilient markets in the Midwest and South.”

Not including the five properties in the purchase, Boyd owns and operates 17 gaming entertainment properties located in Nevada, New Jersey, Mississippi, Illinois, Indiana, and Louisiana.