Pennsylvania-based Penn National Gaming is acquiring Pinnacle Entertainment in a cash and stock transaction valued at $2.8 billion, both companies announced on Monday.

Under the acquisition, Penn will go from having 29 properties to 41 properties. The deal includes four Louisiana properties that Pinnacle leases and operates — L’Auberge Casino Resort in Lake Charles, L’Auberge Casino and Hotel in Baton Rouge, Boomtown Casino and Hotel New Orleans and Boomtown Casino and Hotel Bossier City.

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The announcement comes just three weeks after both companies confirmed they were talking about a potential deal for Penn National to buy Pinnacle.

Eric Schippers, Penn National’s senior vice president of public affairs, said the deal is anticipated to close during the second half of 2018. He said it is pending approval from gaming boards in all jurisdictions.

“It is truly a transformational acquisition for our company,” Schippers said. “This gives us a chance to further enhance our position as America’s leading gaming company. It really combines two of the leading gaming companies and provides a much greater scale and opportunity to provide a better experience for our guests.”

The deal also calls for Penn National to sell four existing Pinnacle properties — two in Missouri and one each in Indiana and Ohio — to Las Vegas-based Boyd Gaming Corp. for about $575 million in cash. Schippers said the sale was included because Penn National already has properties in those markets.

Schippers said Penn National plans to keep the L’Auberge brand names. He said the Lake Charles casino resort is “really one of the best-in-class.”

“We think very highly of the L’Auberge brand,” Schippers said. “This allows us to enter a new market. It will provide us access to Lake Charles as well as Baton Rouge.”

Troy Stemming, Pinnacle’s executive vice president of government relations and public affairs, said the acquisition will “create a more efficient gaming company.” He said Pinnacle will work to make the transition seamless during 2018 until the deal closes.

“The transaction could take nine months to a year,” Stemming said. “From Pinnacle’s perspective, I don’t think people will see material changes on the local level in 2018.”

Stemming said the acquisition will be a benefit on many levels.

“Our focus has always been providing what’s best for our shareholders, guests and team members,” he said. “I think it checks all three of those boxes.”

Pinnacle shareholders will get $20 in cash per share and 0.42 shares of Penn National per Pinnacle share.

The Louisiana Gaming Control Board in April 2016 approved a deal allowing Pinnacle to sell and lease back several casinos to Gaming and Leisure Properties Inc., a real estate investment trust company and an offshoot of Penn National. Included in the sale were the L’Auberge properties in Lake Charles and Baton Rouge, along with the Boomtown Casino properties in New Orleans and Bossier City. The deal between Pinnacle and GLPI requires Pinnacle to pay GLPI $377 million in annual rent to operate the gambling facilities.

‘We think very highly of the L’Auberge brand. This allows us to enter a new market. It will provide us access to Lake Charles as well as Baton Rouge.’

– Eric Schippers

Penn National senior vice president of pubic affairs

96724bf4-038a-55cb-88b3-745e55b187cb2017-02-03T09:54:45Znews19663125-jpgChristophe EnaFriday Feb. 3