In a deal that would more than double its size, Pinnacle Entertainment announced today it will buy rival Ameristar Casinos for about $869 million, plus take on $1.9 billion of its debt. Pinnacle owns seven U.S. casinos and a racetrack—including the new L’Auberge Casino & Hotel in Baton Rouge—and is developing another gaming property. Ameristar has eight casinos in the United States, the nearest to Louisiana of which is located in Vicksburg, Miss. Pinnacle says buying Ameristar could help it become a bigger player, while trimming some costs. If the deal is approved by shareholders and regulators, Pinnacle will pay $26.50 for each share of Ameristar Casinos Inc. That’s about 20% premium over the company’s Thursday closing stock price of $22.07. It’s also gaining $116 million of the company’s cash. Along with its L’Auberge properties in Baton Rouge and Lake Charles, Pinnacle has casinos in Missouri and Indiana, and is developing another in Ohio.
L’Auberge parent company buying Ameristar Casinos for $869 million
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