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Churchill Downs Incorporated (“CDI” or the “Company”) (Nasdaq: CHDN) announced today that it has completed the Company’s purchase of substantially all of the assets of Peninsula Pacific Entertainment LLC (“P2E”) for a total consideration of $2.75 billion (the “P2E Acquisition”). The acquisition of P2E includes all of P2E’s assets and operations in Virginia, New York and Sioux City, Iowa, and follows the receipt of customary licensing approvals from the Virginia Racing Commission, New York State Gaming Commission and the Iowa Racing and Gaming Commission.
“Today marks an important moment in the evolution of Churchill Downs Incorporated,” said Bill Carstanjen, President and CEO of CDI. “This transaction significantly expands our geographic footprint to Iowa, New York and Virginia, introducing a unique set of assets and attractive organic growth opportunities for our company. We are delighted to welcome the teams from each of these well-established properties to Churchill Downs Incorporated.
P2E Acquisition includes:
- Colonial Downs Racetrack in New Kent, Virginia, as well as six historic Rosie’s Gaming Emporium (“Rosie’s”) horse racing facilities across Virginia. Rosie’s locations currently include Collinsville, Dumfries, Hampton, New Kent, Richmond and Vinton, and include approximately 2,700 historic racing machines (“HRM”).
- Del Lago Resort & Casino in Waterloo, New York, a 96,000 square foot casino with approximately 1,700 slot machines, 80 table games, a 205-room hotel, nine restaurants/bars, 758 covered parking spaces, a park a 6,000 square foot sports betting area, a 2,400 seat entertainment venue and a 7,200 square foot outdoor event venue.
- Hard Rock Hotel & Casino in Sioux City, Iowa, a 45,000 square foot casino with 639 slot machines, 20 table games, a 54-room hotel, 1,511 parking spaces, two live entertainment venues, a collection of 100-piece musical memorabilia, and a Hard Rock-branded sportsbook.
The P2E Acquisition also includes other development rights:
- The opportunity under Virginia law to develop up to five additional HRM entertainment venues in Virginia with collectively up to approximately 2,300 additional HRM.
- The rights to build a new HRM entertainment venue with up to 1,800 HRM in Dumfries, Virginia. The Dumfries project is located in northern Virginia and the initial phase is expected to open in 2023.
- The rights to develop a new HRM entertainment venue with up to 150 HRM in Emporia, Virginia. The Emporia project, located along I-95 near the North Carolina border, is expected to open in 2023.
- The rights to P2E’s ongoing efforts, in partnership with Urban One, to develop ONE Casino + Resort, a $565 million destination casino in Richmond, Virginia.
Macquarie Capital acted as exclusive financial advisor and Sidley Austin LLP acted as legal advisor to CDI.
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