WYOMISSING, PA—Gaming and Leisure Properties is acquiring The Meadows Racetrack and Casino in Washington, PA, a suburb of Pittsburgh, from Cannery Casino Resorts for $440 million, which includes $10 million previously paid and other adjustments.
The transaction settles all claims between GLPI and Cannery.
"We are pleased to resolve the Cannery litigation in a manner that we believe is positive for both companies," says Peter M. Carlino, chairman and chief executive officer of Gaming and Leisure Properties. "The amended agreement allows us to add The Meadows to our growing portfolio of high quality regional gaming assets at a price that is reflective of current property performance. The property has enjoyed improving performance in the second half of 2015 and we look forward to partnering with one of the many quality operators in the gaming industry to continue that momentum."
The 180,000 square foot casino, which opened in 2007, contains 3,172 slot machines, 74 table games and 14 poker tables. In addition to the casino, the property includes 11 casual and fine dining restaurants, bars and lounges, a 24-lane bowling alley and a 5/8 mile racetrack with a 500-seat grandstand. Additionally, a 154-room hotel, which is owned and operated by a third party operator, opened in April 2015 and is located adjacent to the casino.
GLPI says it will use equity and debt to finance the acquisition, which represents approximately 9.6 times the property's long-term EBITDA. GLPI is seeking a third party operator for the property, and will retain ownership of the land and buildings. The transaction requires approval from the Pennsylvania Gaming Control Board and the Pennsylvania Harness Racing Commission and is expected to close in the second half of 2016. The transaction has an outside closing date of November 2016.
"This resolution is a good outcome for CCR shareholders," says William Paulos, co-CEO of Cannery Casino Resorts. "All of the net sale proceeds will be used to reduce our debt and better position us for the future. We are now focused on working with GLPI to ensure a smooth transition for our team members and customers."
Stifel served as financial advisor to Cannery Casino Resorts on this transaction.
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Steve Lubetkin
Steve Lubetkin is the New Jersey and Philadelphia editor for GlobeSt.com. He is currently filling in covering Chicago and Midwest markets until a new permanent editor is named. He previously filled in covering Atlanta. Steve’s journalism background includes print and broadcast reporting for NJ news organizations. His audio and video work for GlobeSt.com has been honored by the Garden State Journalists Association, and he has also been recognized for video by the New Jersey Chapter of the Society of Professional Journalists. He has produced audio podcasts on CRE topics for the NAR Commercial Division and the CCIM Institute. Steve has also served (from August 2017 to March 2018) as national broadcast news correspondent for CEOReport.com, a news website focused on practical advice for senior executives in small- and medium-sized companies. Steve also reports on-camera and covers conferences for NJSpotlight.com, a public policy news coverage website focused on New Jersey government and industry; and for clients of StateBroadcastNews.com, a division of The Lubetkin Media Companies LLC. Steve has been the computer columnist for the Jewish Community Voice of Southern New Jersey, since 1996. Steve is co-author, with Toronto-based podcasting pioneer Donna Papacosta, of the book, The Business of Podcasting: How to Take Your Podcasting Passion from the Personal to the Professional. You can email Steve at [email protected].
