Prolonged discussions about Meadows Racetrack & Casino acquisition have come to an end and it was announced that its new owner is Gaming & Leisure Properties Inc., a spinoff company of Penn National Gaming. The current owner of the Washington County property, Cannery Casino Resorts, has inked an amended sales agreement with Gaming & Leisure. The announced acquisition price was $440 million, which is $25 million less than the previous proposal submitted back in May 2014.
GLPI filed a lawsuit against Cannery Casino Resorts and accused the latter of having overstated the financial performance of the casino venue. In point of fact, that accusation formed the basis of the sale price.
According to the released information, GLPI was going to keep the buildings and real estate but was willing to work in collaboration with a third company responsible for the harness track and casino, located about 15 miles away from Pittsburgh.
Back in May 2014, Gaming & Leisure announced its intention to purchase the property for the amount of $465 million, but the deal was brought to a standstill after GLPI examined the financial records provided by Cannery officials and concluded the disclosed information had not truthfully reflected Meadows declining performance.
As a result, a federal lawsuit was filed since GLPI sought a $10 million compensation for unspecified damages. Pennsylvania gambling authorities were expected to approve the deal by November, but the matter is to be discussed during the January meeting of Pennsylvania Gaming Control Board and Pennsylvania Racing Commission.
According to market analysts, Gaming & Leisure might have got the acquisition price reduced but it is to pay nine times more than Meadows’ annual profits before EBITDA. They consider the price pretty high and although the deal had not been too beneficial for GLPI, the company was still going to get some concessions.
Meadows Racetrack & Casino became known as the first casino based in the Western part of Pennsylvania. It opened doors for visitors in 2007 and since then it has been playing an important role in local economy. As for the casino, it features more than 3,000 slots, 74 table games and 14 poker tables. There are also dining and entertainment facilities as well as a 154-room hotel built with the aim of increasing property’s market value.
Since Meadows financial performance over the second half of the year was improved, GLPI officials revealed that they were determined to prolong that momentum and partner with one of the most prominent casino operators.
