Casino firm Penn National to be acquired for $6.1 billion

Racetrack and casino operator Penn National Gaming Inc. said Friday that it had agreed to be acquired by funds managed by two investment firms for about $6.1 billion in cash.

Penn National, with revenue of $2.2 billion in 2006, operates 18 gambling facilities stretching from Maine to New Mexico as well as Ontario, Canada.

Its properties include four Hollywood Casinos in Louisiana, Illinois and Mississippi; Argosy casinos in Illinois, Indiana, Missouri and Iowa; and the Boomtown Casino in Biloxi, Miss. It has racetracks in Maine, West Virginia, New Jersey, Pennsylvania, Ohio and New Mexico.

Under the buyout agreement, shareholders of the Wyomissing, Pa.-based company will receive $67 for each share, about a 31% premium over the closing price of $51.14 on Thursday.

The buyers -- led by Fortress Investment Group, a publicly traded asset management company, and private equity firm Centerbridge Partners -- will also repay $2.8 billion in Penn National’s outstanding debt.