Boyd buys Valley Forge Casino Resort
At the end of December, Boyd Gaming Corporation bought Valley Forge Casino Resort from Valley Forge Convention Center Partners LP for $280.5 million. The casino has been through multiple changes since opening six years ago, as it looks to court continual growth, but this acquisition is the biggest. Boyd’s decision to buy the casino stems – at least, in part – from changes in regulation. While there was once a $10 mandatory entrance fee to get into gaming joints, that has now been waved. And Valley Forge has embraced it wholeheartedly, advertising its “free entry” policy with vigour.
Boyd’s share price has appreciated by 8% in the first five weeks of 2018
SOURCE: Yahoo Finance
David Strow, a spokesperson for Boyd, answered reporters’ questions about possible changes that the company might make to Valley Forge, saying:
“We’re still a month out from actually closing on the acquisition. We would need to take a look at the operations and see what makes sense. But we think there’s a lot of long-term potential in the property. I’ve heard fabulous things about the King of Prussia area, and with the presence of Valley Forge National Historical Park, there are a lot of things drawing people to that area. Pennsylvania has emerged over the last several years to become one of the largest gaming markets in the United States. It’s one of the areas where we didn’t have a presence before, so we’re very excited about the opportunity to get into the Pennsylvania market.”
Meanwhile, in the company’s press release, Boyd president and CEO, Keith Smith, made the following comment:
“The acquisition of Valley Forge Casino Resort is another excellent opportunity to further grow and diversify our nationwide portfolio. With this acquisition, we will expand into the second-largest gaming state in the country, establishing a presence in a densely populated, high-traffic area just west of Philadelphia. And thanks to Pennsylvania’s recent passage of gaming expansion legislation, there are new opportunities to drive incremental growth at Valley Forge through the expansion of the property’s slot capacity and the introduction of new forms of gaming.”
Dominion holds Boyd Gaming Corporation in its Global Trends Luxury Fund.
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