Owners agree to sale of Colorado casinos

Jun 18, 2007 5:25 AM

The owner of three casinos in Black Hawk has agreed to be acquired in a $6.1 billion deal.

Penn National Gaming Inc., of Wyomissing, Pennsylvania, is being purchased by a private equity group. The company said the all-cash deal is worth $8.9 billion, including the assumption of $2.8 billion of debt by the buyers.

Penn National stockholders will get $67 a share. The deal is expected to take 12 to 16 months to close.

In Black Hawk, Penn National owns the Bullwhackers Casino, Bullpen Sports Casino and the Silver Hawk Saloon and Casino.

Overall, the company, with net revenue of $2.2 billion in 2006, operates 18 gambling facilities stretching from Maine to New Mexico and into Ontario, Canada.

The buyers led by Fortress Investment Group LLC, a publicly traded asset management company, and private equity firm Centerbridge Partners LP, will also repay $2.8 billion in Penn National’s outstanding debt.

The Penn National board is recommending that its shareholders take the deal, which must also get clearance from government regulators.