Boyd buys Peninsula for $1.45 Billion
The purchase will add five properties to Boyd Gaming's existing portfolio: Kansas Star Casino near Wichita, Kan.; Diamond Jo Casino in Dubuque, Iowa; Diamond Jo Worth in Northwood, Iowa; Evangeline Downs Racetrack & Casino in Opelousas, La.; and Amelia Belle Casino in Amelia, La.
The purchase price represents an EBITDA multiple of 7.0 times based on the trailing 12âmonth EBITDA of $109 million for Peninsula's Iowa and Louisiana properties, an annualized runârate for Kansas Star based on its firstâquarter 2012 EBITDA of $26.8 million, and corporate expense of $10 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, president and chief executive officer of Boyd Gaming in a prepared statement. “The Peninsula properties are a strong fit for us, as they are wellâmanaged and operate in resilient markets in the Midwest and South. We anticipate this transaction will be immediately accretive to earnings and significantly increase our free cash flow.”