Gaming and Leisure Properties Acquires Meadows Racetrack and Casino for $465 Million
Today it was announced that Gaming and Leisure Properties has entered into an agreement with Cannery Casino Resorts to acquire the Meadows Racetrack and Casino which is located in Washington, Pennsylvania.
The value of this deal is said to be $465 million and Stifel served as financial adviser to Cannery Casino Resorts on this transaction.The casino was opened in 2007 and it is 180,000 square feet and houses 61 table games, 14 poker tables and 3,317 slot machines. The casino property also has 11 bars, lounges and dining restaurants as well as a 24-lane bowling alley and of course a 500-seater grandstand 5/8 mile racetrack.
It has been said that Gaming and Leisure Properties will fund this deal with a combination of debt and equity and the purchase price is approximately nine times the casino’s 2013 EBITDA (Earnings before interest, taxes, depreciation, and amortization).
Gaming and Leisure Properties is hoping to retain the ownership of the land and buildings while selling the entities holding the operating assets and licenses to a third party operator.
This deal is expected to close in 2015 and is currently awaiting approval from the Pennsylvania Gaming Control Board and the Pennsylvania Racing Commission.
According to the Chairman and CEO of Gaming and Leisure Properties, Peter M. Carlino, this acquisition falls in line with their strategy to acquire high quality assets in the gaming markets.
Currently there is a new 154-room hotel being built by a third party operator adjacent to the casino which is expected to open in 2015. Other plans include a third party retail center and there is also room for an indoor event venue.