The owner of Delta Downs Racetrack & Casino has entered into a definitive agreement to acquire Peninsula Gaming, which owns Evangeline Downs Racetrack & Casino, for $1.45 billion.
Both racetracks are located in Louisiana, and each offer Thoroughbred and Quarter Horse meets.
Boyd Gaming will acquire Peninsula Gaming’s five properties: Evangeline Downs and four non-track casinos in Iowa, Kansas, and Louisiana.
“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,” Boyd Gaming president and chief executive officer Keith Smith said. “The Peninsula properties are a strong fit for us, as they are well-managed and operate in resilient markets in the Midwest and South.”
Boyd Gaming said it expects the transaction to close by the end of this year. The ownership transfer of Evangeline Downs would have to be approved by the Louisiana State Racing Commission.
The Delta Downs owner said it has obtained committed financing for the entire transaction. Boyd Gaming will fund the transaction with $200 million in cash and about $1.2 billion in debt at the Peninsula subsidiary. In addition, a note provided by the seller of approximately $144 million will be part of the consideration.
Boyd Gaming is based in Las Vegas. It has 17 facilities in Illinois, Indiana, Louisiana, Mississippi, Nevada, and New Jersey. Delta Downs is its only racetrack.