Penn National completes Margaritaville Casino acquisition

The acquisition further expands the company’s regional gaming platform through the addition of a new resort in Bossier City.

US.- Penn National Gaming has announced that it completed the purchase of the operations of Margaritaville Resort Casino in Bossier City, Louisiana. The transaction was completed for total consideration of US$115 million.

Besides the closing of the transaction, Penn National also entered into a triple-net lease agreement with VICI Properties for the Margaritaville facility. The lease has an initial annual rent of approximately US$23 million and an initial term of 15 years, with four 5-year renewal options.

Timothy J. Wilmott, Penn National’s Chief Executive Officer, said: “Margaritaville, Bossier City’s newest casino resort, is an attractive addition to our regional gaming platform. This acquisition is in line with our efforts to enhance shareholder value as it is immediately accretive to our free cash flow, further diversifies our revenue and operating base and offers a well-defined path to the realisation of synergies that are expected to lower the purchase multiple.

“Margaritaville is one of the leading casino resorts in Bossier City, and we expect that our proven integration and operating strategies will help grow operating margins as well as free cash flow contributions from the property. We are excited to welcome Margaritaville employees to Penn National.”