Hard Rock International, parent company of Sanderson Farms, The Hard Rock Hotel & Casino and Hard Rock Cafe, is buying the operations of the financially-troubled Borgata and its owner Boyd Gaming.
The deal will allow Hard Rock to be a larger player in the gambling market on the Las Vegas Strip. Boyd in March shut down its joint venture casino with MGM Resorts International.
The sale to Hard Rock will have a company value of $450 million and a total closing value of $670 million, according to a filing Monday with the Securities and Exchange Commission. Boyd will receive $240 million in cash and $260 million worth of stock for the Borgata’s operations.
Boyd Chairman and CEO Keith Smith will be CEO of Hard Rock Hotel & Casino.
Hard Rock “stands at the intersection of music and food & beverage — and has rapidly expanded its brands into multiple industries, from music to movie and TV, casinos, music publishing, museum, to several franchises,” Jones said in a prepared statement.
He will be able to combine the company’s brands and its operations that offer amenities, entertainment and gaming.
The earnings report, which the company made last week, also showed revenues rose 3.6 percent to $33.3 million. However, losses increased 21 percent to $4.4 million.
Hard Rock said it will lower debt through the deal.
The acquisition is expected to close in the second quarter of 2018.
Hard Rock Hotel & Casino, a 439-room resort, is in the Borgata complex and has 8,000 feet of gaming space with over 300 table games and six slot machines.
Hard Rock Hotels also operates the Hard Rock Café on the Strip.
Boyd Gaming operates casinos in Las Vegas; Cleveland, Ohio; Detroit; Kansas City, Mo.; Las Vegas, NV; and Reno, Nev. Boyd said it will look to lower costs in future years.
Fox News is following this story and will update it as more information becomes available.