In December, 2015, Gaming & Leisure Properties Inc. (GLPI) acquired Meadows Racetrack and Casino for $440 million. Several months later in March, 2016, Pinnacle Entertainment revealed that the company will be taking over the property for a total price of $138 million. After the news hit the public, Pinnacle’s stock went up for 2.5%.

Once the transaction is closed, the company will operate the racetrack’s gaming entertainment business and lease its property from GLPI in a triple net lease with initial annual rent of $25.5 million. It was reported that in a twelve-month period Meadows generated net revenues of approximately $289 million, EBITAR of around $47.2 million and EBITDA after giving effect to rent expense of $21.7 million.

The Chief Executive Officer of Pinnacle, Anthony Sanfilippo, stated that everyone in the company was looking forward to “welcoming team members and guests of the Meadows into the Pinnacle Entertainment family.” He described the property as an attractive gaming business with high quality gaming and non-gaming amenities. Sanfilippo pointed out that Meadows would complement the company’s existing collection of properties and provide “additional operational scale, geographic diversity and another wonderful location.” After the deal is closed, Pinnacle will own 16 locations in 10 states and 14 distinct gaming markets.

Meadows Racetrack and Casino is located in Washington, PA, which is around 25 miles outside of Pittsburgh, PA. The facility is equipped with a casino floor as well as with a pari-mutuel horse racetrack whose grandstand counts 500 seats. In addition, the establishment has a wide non-gaming amenity offer of 11 casual and fine restaurants, lounge outlets, bars, a bowling centre and a 7,500 square feet banquet space.

Hotel accommodation is provided in the attached Hyatt Place hotel, which features 155 rooms; the hotel, however, is separately managed and owned.

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