Boyd Gaming will buy the Imperial Palace in Biloxi, Miss.

Jun 16, 2011 1:00 PM

Boyd Gaming will buy the Imperial Palace Casino Resort Spa in Biloxi, Miss., for $278 million in cash, the casino operator said Thursday.

President and CEO Keith Smith said the resort fits well with Boyd’s existing properties and helps to diversify its geographic reach by giving it a presence in a leading regional destination market.

The resort, owned by Imperial Palace of Mississippi LLC and Key largo Holdings LLC, has nearly 1,100 hotel rooms and suites, 1,900 slot machines, 62 table games, convention and meeting space, bars, restaurants and other amenities.

Boyd said it will an existing revolving credit agreement to fund the deal and will invest about $44 million in capital improvement projects after the acquisition is complete.

The deal, expected to close this year, also includes a $10 million contribution at closing to the Engelstad Family Foundation. The contribution will be dispersed to local and regional charities in the Biloxi area over the next five years.

Boyd is seeking more acquisition targets as well, Smith said.