Gaming and Leisure Properties has entered into an agreement to acquire The Meadows Racetrack and Casino located in Washington, Pa., a suburb of Pittsburgh, from Cannery Casino Resorts for $465 million.
According to a company press release, the 180,000-square-foot casino, which opened in 2007, contains 3,317 slot machines, 61 table games and 14 poker tables. In addition to the casino, the property includes 11 casual and fine dining restaurants, bars and lounges, a 24?lane bowling alley and a 5/8 mile racetrack with a 500?seat grandstand.
The purchase price, which the company intends to fund with a combination of equity and debt, represents approximately nine times the property's 2013 EBITDA. The purchase price reflects the expected stability of market competition and the robust local economy resulting from Marcellus Shale?related industry.
Gaming and Leisure Properties will immediately begin a search for a third party operator for the property, to whom the company expects to sell the entities holding the licenses and operating assets, while retaining ownership of the land and buildings.
The transaction, which is expected to be accretive immediately upon closing, is subject to and requires approval from the Pennsylvania Gaming Control Board and the Pennsylvania Racing Commission and is expected to close in 2015.
"The acquisition of The Meadows represents another step in the execution of our strategy to grow our company into the leading owner of high quality assets in key regional gaming markets,” said Peter M. Carlino, chairman and CEO of Gaming and Leisure Properties in a prepared statement. “This acquisition is a prime example of how we are uniquely able to tailor transactions to suit the specific needs of sellers. We look forward to partnering with one of the many quality operators in the gaming industry and believe that this acquisition creates meaningful additional value for our shareholders."
A new 154?room hotel, to be owned and operated by a third party operator, is currently under construction adjacent to the casino and is expected to open in 2015. In addition, a new, third party retail center is currently planned, and the property contains developable space for an indoor event venue.