Monday, September 13, 2010

Churchill Downs To Acquire Mississippi Casino For $138M

Churchill Downs To Acquire Mississippi Casino For $138M
Churchill Downs Inc. (CHDN) has agreed to acquire Harlow's Casino Resort & Hotel in Mississippi for about $138 million as the horse-racing company continues to expand its business into casinos.

Harlow's, which started operations in 2007, is owned by Levine Leichtman Capital Partners Inc. and Oak Hill Advisors LP, as well as private investor Jess M. Ravich.

At that time, the project's price tag was put at $70 million. The 1930s-themed facility has a 33,000-square-foot casino, a 105-room hotel and an arena with 2,600 seats. Located near the Mississippi River, Harlow's had $50.4 million in revenue for the year ended July 31.

"The key determinants of our decision to acquire Harlow's were further strategic business and geographic diversification," said Churchill's President and Chief Executive Robert L. Evans. "With the acquisition of Harlow's, we continue our diversification strategy across our racing, gaming and online business units." The company also bought online horse-race handicapping and betting site Inc. for $126.8 million in November.

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