MGM Resorts International has reached an agreement with Boyd Gaming Corp. to acquire Boyd's 50 percent interest in Borgata Hotel Casino & Spa in Atlantic City for $900 million. MGM and Boyd currently are co-owners of Borgata's parent, the Marina District Development Holding Co., and the purchase will make MGM the Borgata's sole owner.
"Borgata is the premier resort in Atlantic City and a great addition to our growing presence in the Northeast," said Jim Murren, chairman and CEO of MGM Resorts International. "While the market continues to experience challenges, 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. We are excited about the opportunity to bring our market-leading loyalty program, M life Rewards, to the resort, and to integrate our operations to position Borgata for further growth."
After acquiring Boyd's share in Borgata, MGM Growth Properties (MGP) -- a real estate investment trust (REIT) spun off from MGM in April -- will acquire the property from MGM and lease it back to an MGM subsidiary.
"We are excited to add Borgata to the MGP portfolio, further diversifying our geographic presence," said James Stewart, CEO of MGM Growth Properties. "With this transaction, we are executing on our core growth strategy in prudently building a portfolio of high-quality assets with market-leading competitive positions."
Borgata opened in 2003 and underwent a $13 million renovation last year. The acquisition is expected to be completed in the third quarter of this year.