Boyd Gaming to buy IP Casino for $278M in cash

by For the MBJ

Published: June 16,2011

Tags: casinos, gambling, gaming, hotels, lodging, mergers and acquisitions, restaurants, tourism

BILOXI — Boyd Gaming Corporation has entered into a definitive agreement to acquire the IP Casino Resort Spa in Biloxi from Imperial Palace of Mississippi, LLC, and Key Largo Holdings, LLC, for $278 million in cash. The company will also contribute $10 million at closing to the Engelstad Family Foundation, which will be distributed over the next five years to local and regional charitable organizations in the Biloxi area.

The transaction will be financed with proceeds from the company’s existing revolving credit facility, and is expected to be accretive to earnings. Following closing, Boyd Gaming plans to invest approximately $44 million in certain capital improvement projects at the property.

Upon satisfactory completion of a 45-day due diligence period, and subject to the terms of the definitive agreement and satisfaction of various closing conditions, including the receipt of federal and Mississippi regulatory approvals, the transaction is expected to close before the end of the year.

Source: Boyd Gaming