Eldorado Resorts, Inc. announced today that it entered into definitive agreements to sell substantially all of the assets and liabilities of Presque Isle Downs & Casino in Erie, Pennsylvania and Lady Luck Casino Vicksburg in Vicksburg, Mississippi to Churchill Downs Incorporated.
Under the terms of the agreements, Churchill Downs will purchase Presque Isle Downs & Casino for cash consideration of approximately $178.9 million and Lady Luck Casino Vicksburg for cash consideration of approximately $50.6 million, in each case subject to a customary working capital adjustment.
Both transactions are subject to receipt of required regulatory approvals, termination of the waiting period under the Hart-Scott-Rodino Act and other customary closing conditions, including, in the case of Presque Isle Downs & Casino, the prior closing of the sale of Lady Luck Casino Vicksburg. The Lady Luck Casino Vicksburg transaction is expected to close in the second quarter of 2018, and the Presque Isle Downs & Casino transaction is expected to close in late 2018.
Gary Carano, Chairman and Chief Executive Officer of Eldorado, commented, “Our agreements to divest Presque Isle and Lady Luck Vicksburg are consistent with our strategy to maximize returns from our portfolio of regional gaming assets through investments in new properties as well as opportunistic divestitures. The sale price represents an attractive multiple of these properties’ trailing twelve months cash flows. We remain fully committed to expanding our platform into growth markets that we believe have the potential for high returns as well as deploying capital toward high return investments in our existing properties.”
Macquarie Capital is acting as exclusive financial advisor to Eldorado in connection with the proposed transactions.