Churchill Downs acquires “crown Gem of Illinois Gambling ” in Most Recent acquisition deal within the US land-based casino Area
Gambling company Churchill Downs Incorporated announced on Wednesday that it has reached an agreement to purchase a majority stake in Rivers Casino Des Plaines at Des Plaines, Illinois. The trade entails Churchill Downs’ acquisition of “certain of their ownership interests” of Midwest Gaming Holdings, parent company of the gaming venue.
Rivers Casino Des Plaines first started doorways in 2011. The casino features a 44,000-square-foot gaming floor with almost 1,000 slot machines and 58 table games in addition to multiple food and beverage amenities and an event center.
Under the conditions of the bargain, Churchill Downs will assume possession of at least 50.1percent of Midwest Gaming and will cover no more than $500 million in cash to finish the transaction. Churchill Downs has agreed to purchase 100% of their ownership stake from the Des Plaines-based casino’s parent firm in Clairvest Group affiliates and co-investors for $291 million and additional units of Midwest Gaming now owned by Top Plaines Gaming, an affiliate of major gambling group Rush Street Gaming, which will result in a money consideration of no less than $326 million.
It has also become known that Rush Street will keep managing the daily operations of their Des Plaines casino. When the trade is complete, the business expects to hold approximately the same stake in the gambling venue as it currently possesses.
The deal is subject to approval from the Illinois Gaming Board and other customary closing conditions and is expected to be finalized in the first half of 2019.
Crown Jewel of Illinois Gambling
Commenting on the deal, Churchill Downs CEO Bill Carstanjen reported that it came as part of his company’s strategy to invest in gaming possessions with “stable, predictable cash flows in diverse markets. ” the executive pointed out that the Des Plaines casino would be the “crown jewel of Illinois gaming” and one of the nation’s premier casinos.
The purchase of Rivers Casino Des Plaines isn’t the first time Churchill Downs and Rush Street have engaged in a deal of this kind. In 2012, the former firm purchased Riverwalk Casino and Hotel at Vicksburg, Mississippi from Rush Street.
Greg Carlin, CEO of Midwest Gaming, commented on the newly announced trade, praising Churchill Downs to get creating significant shareholder value over the years and expressing optimism that Rivers Casino will last to become one of North America’s most successful gambling destinations below the Churchill Downs and Rush Street stewardship.
The newly announced trade comes as yet another manifestation of a growing tendency of major US land-based gambling businesses merging or acquiring possessions in an attempt to cement their positions at an extremely competitive environment.
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