Harveys buying Boomtown | TahoeDailyTribune.com

Harveys buying Boomtown

Harveys Casino Resorts has finalized negotiations to buy the parent company of Boomtown Hotel-Casino for $630.5 million and the transaction is expected to close in the fourth quarter 2000.

Pinnacle Entertainment, the parent company of Boomtown, is selling its stock for $24 per fully diluted share in cash to PH Casino Resorts, a newly formed subsidiary of Harveys Casino Resorts. An additional $1 per fully diluted share may be paid if Pinnacle property in California is included in the sale.

According to Bill Eadington, director of the Institute of Study on Gambling and Commercial Gaming at the University of Nevada, Reno, Harveys made a good buy.

“It certainly makes Harveys a more significant player than they have been before and it strengthens their position in other markets,” Eadington said. “It’s also a great opportunity for Harveys to exercise their management training which they have been building up.”

With the merger, Harveys will be ranked as the the fifth-largest gaming establishment in the nation, growing the company’s acquisitions from four to 10 properties and increasing its combined annual revenue to about $1.1 billion.

On Monday, Pinnacle stock closed at $20.06 per share.

Harveys Casino Resorts and Pinnacle Entertainment were not available for comment as of press time.

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