Churchill Downs To Buy Almost All Assets Of Peninsula Pacific For $2.485 Bln - Quick Facts

(RTTNews) - Gaming entertainment company Churchill Downs Inc. (CHDN) announced Tuesday that the Company has entered into a definitive purchase agreement to acquire substantially all of the assets of Peninsula Pacific Entertainment LLC for total consideration of $2.485 billion.

Under the deal, Churchill Downs will acquire all of Peninsula's assets in Virginia and New York as well as the operations of its Sioux City casino property.

The transaction is expected to significantly expand the geographic footprint of Churchill Downs Live and historical racing entertainment venues and increases scale.

The transaction is dependent on usual and customary closing conditions, including the Company obtaining approvals 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.

The transaction is expected to be immediately accretive to Churchill Downs' free cash flow and diluted earnings per share. Churchill Downs will fund the transaction with a combination of new debt and cash on hand.