Harveys Parent to Buy Pinnacle

Casino owner and card club operator Pinnacle Entertainment Inc. on Monday agreed to be acquired by the parent of Harveys Casino Resorts in a $675-million stock deal, completing negotiations that began last month.

The agreement caps nearly a year of deal-making in which Glendale-based Pinnacle, formerly Hollywood Park Inc., sold or agreed to sell its thoroughbred horse-racing tracks in Los Angeles and Arizona, as well as two Mississippi casinos, to focus on core gambling operations.

The proposed acquisition comes amid a round of consolidation in the casino and gambling industry, as operators seek to increase their size to cut costs and boost profits.

Including debt assumption of about $625 million, Pinnacle’s merger with Harveys, a subsidiary of private investment firm Colony Capital Inc. of Los Angeles, is valued at about $1.3 billion.

Pinnacle shares rose 31 cents to close at $20.06 on the New York Stock Exchange.