Pinnacle Entertainment announced on Friday that it entered into an agreement to buy all outstanding common shares of Ameristar Casinos Inc.
The deal’s total enterprise value is US$2.8 billion, including debt of US$1.9 billion and cash on hand of US$116 million. The deal, which received unanimous approval of both Ameristar and Pinnacle’s board of directors, represents a premium of 45% over the average closing price of Ameristar common stock for the 90 days ended December 20.
Pinnacle Entertainment, Las Vegas, expects the transaction to close by the end of the third quarter of 2013, saying that the financing is already secured.
“The acquisition of Ameristar is a transformative transaction for Pinnacle that will provide us the scale and diversification to more effectively compete. The coupling of Pinnacle and Ameristar properties will create a terrific portfolio of quality assets to serve our combined guests,” said Anthony Sanfilippo, president and CEO of Pinnacle Entertainment.
The Las Vegas-based Ameristar’s portfolio includes:
- Ameristar Casino Resort Spa Black Hawk, located in Black Hawk, Colorado
- Cactus Petes Resort Casino, located in Jackpot, Nevada
- Horseshu Hotel & Casino, Jackpot, Nevada
- Ameristar Casino Hotel Council Bluffs, Council Bluffs, Iowa
- Ameristar Casino Hotel East Chicago, located in East Chicago, Indiana
- Hotel Kansas City, located in Kansas City, Missouri
- Ameristar Casino Resort Spa, located in St. Charles, Missouri
- Ameristar Casino Hotel Vicksburg, located in Vicksburg, Mississippi