Blue Chip Casino to be Acquired by Boyd Gaming.MICHIGAN CITY Michigan City, city (1990 pop. 33,822), La Porte co., NW Ind., on Lake Michigan; inc. 1836. Michigan City produces machinery, consumer articles, kitchen and transportation equipment, concrete and wire products, chemicals, apparel, and cast iron boilers. , Ind.--(BUSINESS WIRE)--June 28, 1999-- Blue Chip Casino announced today that it has agreed to be acquired by Boyd Gaming Boyd Gaming Corporation (NYSE: BYD) is a Las Vegas, Nevada based business engaged in the development, ownership and operation of hotels and casinos throughout the United States. Corp. of Las Vegas Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. , Nevada. Blue Chip Casino, which opened in August 1997, will become one of 12 casinos owned or operated by Boyd Gaming Corp. Kevin F. Flynn, Blue Chip's chairman and chief executive officer, said, "The decision to sell an asset like this is never an easy one. I am very proud of what this organization has accomplished in just two years of operations." Blue Chip has consistently exceeded the expectations of industry experts, Michigan City and all of its other stakeholders. Boyd Gaming Corp. is a leading diversified owner or operator of 11 casino entertainment properties located in Nevada, Mississippi, Illinois and Louisiana, including the Par-A-Dice Casino located in East Peoria, Ill. William S. Boyd, chairman and chief executive officer of Boyd Gaming, said, "We are thrilled to have reached this agreement. This acquisition is a good fit for us. The focus on employees, guests and the entire culture of guest service present at Blue Chip Casino are also the strengths of Boyd Gaming." Revenue at Blue Chip for the 12 months ended March 31, 1999 was $151.4 million. Its operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. (earnings before interest, income taxes, depreciation and amortization or EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become ) was $62.4 million (41.2 percent of revenue) which is substantially above the market average. Kevin Flynn said, "I want to thank our employees for all they have contributed. Boyd Gaming is a terrific company that can provide our employees with career path opportunities that Blue Chip, as a small company, cannot provide." Kevin Larson, Blue Chip's president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. , added, "I am gratified grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. by Blue Chip's many accomplishments, and I am confident it will continue to serve its staff and its community well." Joe McQuaid, Blue Chip's senior vice president of development, said, "I want to thank Mayor Sheila Brillson for all her support, as well as the entire city for the successful partnership they helped to create between a welcoming city and a good corporate citizen." This transaction is subject to Indiana Gaming Commission approval and is expected to close before the end of the year. |
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