Churchill Downs to acquire Peninsula Pacific Entertainment assets for $2.49bn
Churchill Downs Inc has announced an agreement to acquire most of the assets of Peninsula Pacific Entertainment (P2E) for $2.49bn.
US.- Churchill Downs Inc (CDI) has agreed to acquire most of the assets of Peninsula Pacific Entertainment (P2E). CDI will assume control of P2E’s assets in Virginia, New York and Iowa in a $2.49bn transaction.
That deal covers Colonial Downs Racetrack in New Kent, Virginia, as well as six Rosie’s Gaming Emporium horse racing facilities across Virginia. According to a press release, the company will also acquire Colonial Downs’ stake in the proposed Urban One casino in Richmond if it returns to the ballot and is approved by Richmond residents.
In New York, CDI will acquire the del Lago Resort and Casino in Waterloo. The 96,000 square foot casino has approximately 1,700 slot machines, 80 table games, a 205-room hotel, a 6,000 square foot sportsbook area, a 2,400-seat entertainment venue and a 7,200 square foot outdoor event venue.
In Sioux City, Iowa, the company will take ownership of Hard Rock Hotel & Casino, a 45,000 square foot. casino with 639 slot machines, 20 table games, a 54-room hotel and two live entertainment venues. P2E is expected to reach a definitive agreement to sell the property associated with Hard Rock Sioux City to a third party, and CDI will acquire the operating company, leasing the Sioux City property.
The deal is subject to closing conditions and the company obtaining regulatory approval from the Virginia Racing Commission, the New York State Gaming Commission, and the Iowa Racing and Gaming Commission. The transaction is expected to close by the end of 2022.
CDI said: “The transaction significantly expands the geographic diversity of CDI’s live and historical racing entertainment venues and reinforces CDI’s role as a national leader in historical horseracing.”
A statement signed by CDI CEO Bill Carstanjen read: “P2E has done an exceptional job developing and managing this collection of assets, which we are very excited to acquire and plan to strategically grow in the years ahead.”
