Boyd Gaming sells 50% stake in Borgata to MGM International

borgata

US casino and leisure operator Boyd Gaming Corporation (Boyd) has agreed to sell its 50% stake in Atlantic City’s Borgata casino complex to MGM Resorts International (MGM) for a reported $900 million.

Boyd’s stake is set to be acquired by MGM property subsidiary ‘MGM Growth Properties’ with the deal expected to be completed by Q3 2016.

MGM will take over the management of +2800 room casino resort, which it will co-own in partnership with Marina District Development.

The Borgata is reported to be Atlantic City’s highest grossing casino property; MGM governance was keen to acquire the asset to expand the company’s leisure portfolio within the East Coast of the United States.

Looking to reduce its corporate debt and hit its leverage target ratio, Boyd Gaming governance has decided to cash-in on its Atlantic City asset.

Keith Smith CEO of Boyd Gaming commented that the $900 million Borgata price tag, was a firm testament to the operator’s thirteen year commitment to the Atlantic City casino project.   

MGM International CEO Jim Murren was pleased to announce the investment, stating that the company had strengthened its sector position by acquiring a casino resort which had survived Atlantic City’s recent economic downturn.

“Borgata has outperformed and differentiated itself as the undisputed leader in the city. Our decade-long partnership with Boyd Gaming has been a great one, and Borgata’s talented employee base will complement and strengthen our more than 60,000-member worldwide MGM Resorts team.” Murren stated

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