LAS VEGAS—Boyd Gaming Corporation has entered into a definitive agreement to acquire ALST Casino Holdco, LLC, the holding company of Aliante Casino Hotel and Spa, for total net cash consideration of $380 million.
Opened in 2008 at a cost of more than $660 million, Aliante is an upscale, resort-style casino and hotel located on the 215 Beltway within the master-planned community of Aliante.
“Aliante is an asset without rival in the North Las Vegas market, strategically positioned to benefit from substantial future growth across the northern part of the Las Vegas Valley,” said Keith Smith, president and CEO of Boyd Gaming. “With significant residential and industrial developments moving forward in the area, Aliante’s long-term potential is compelling. In addition, there are significant synergy opportunities at the property, allowing us to immediately improve its operating and financial performance. This acquisition will further strengthen and diversify our robust Las Vegas portfolio, the fastest-growing segment of our business.”
Aliante CEO Soohyung Kim said, “It has been an honor to be part of the rebirth of Aliante Casino from a difficult restructuring to this excellent outcome for all stakeholders. We recognize that it would not have been possible but for the dedication of each and every team member, led by Terry Downey [president/GM at Aliante Gaming LLC]. These efforts have resulted in Aliante becoming the leader in our market. We are confident that Boyd Gaming will take Aliante to the next level and help it fulfill its ultimate potential. The future of North Las Vegas is brighter than ever, and we expect that Aliante will continue to be mainstay of our community.”
Aliante features an 82,000-sq.-ft. gaming floor and more than 200 luxury hotel rooms and suites. The property’s upscale amenities include five signature restaurants; an ultra-modern, 170-seat race and sports book; a 16-screen movie theater complex; 14,000 sq. ft. of event and banquet space; a luxury spa; and a resort-style pool and outdoor lounge area. Aliante is situated on approximately 40 acres within the 1,905-acre Aliante master-planned community, and is adjacent to an 18-hole championship golf course.
Aliante will be Boyd Gaming’s first property in North Las Vegas, and its 10th property in southern Nevada. The company’s current Nevada portfolio includes The Orleans and Gold Coast, both located just west of the Las Vegas Strip; Suncoast, located just south of the master-planned community of Summerlin in northwest Las Vegas; Sam’s Town, on the east side of Las Vegas on Boulder Highway; Eldorado and Jokers Wild, both located in Henderson; and California Hotel and Casino, Fremont Hotel and Casino and Main Street Station, all in downtown Las Vegas.
The company expects the transaction to be cash flow positive and accretive to earnings per share during its first full year of ownership.
The transaction is expected to close during the third quarter, subject to the satisfaction of customary closing conditions and the receipt of all required regulatory approvals, including approval by the Nevada Gaming Commission and the Federal Trade Commission. The transaction will be funded with cash on hand.
Morrison & Foerster LLP served as legal advisor to Boyd Gaming for the transaction. Akin Gump Strauss Hauer & Feld LLP served as legal advisor and Houlihan Lokey served as financial advisor to Aliante.