U.S.-based casino operator Penn National Gaming Inc. plans to buy Greektown Casino-Hotel's operations in Detroit from gaming, hospitality, and entertainment company JACK Entertainment LLC for around $300 million in cash.
The deal will further expand Penn National's already diverse operating base with a facility that is extremely well-positioned in one of the nation's largest regional gaming markets.
With the expected increase to Penn National’s free cash flow, it expects to reduce leverage, evaluate additional accretive strategic growth investments and opportunistically return capital to shareholders. The transaction will be financed with a combination of cash on hand and debt.
The move, which is expected to close in mid-2019, is subject to the approval of the Michigan Gaming Control Board and other customary closing conditions. Upon closer of the deal, Penn National's portfolio of regional gaming facilities will increase to 41 properties in 19 jurisdictions.