A private equity group is betting on gambling in Summit County.
MGM Northfield Park Racino operations have been sold for $546 million.
The deal, announced Oct. 16, will switch ownership of the gambling operations at the casino, entertainment and race track to a private equity fund managed by Clairvest Group Inc.
“I want to thank our MGM Northfield Park employees who have consistently delivered world-class gaming and entertainment experiences to our guests. This is a great property with great opportunity ahead,” said Bill Hornbuckle, CEO & President, MGM Resorts International, in a statement. “At MGM Resorts, our vision is to be the world’s premiere gaming entertainment company. To achieve this vision, we’re focused on growing our digital business, developing our international expansion opportunities, and continuing to invest in our leading integrated resorts domestically.”
The new operator will lease the racino and horse race track from VICI Properties for 25 years.
The announcement did not say whether the racino will be rebranded.
“This is an excellent result for MGM Resorts and demonstrates consistency in driving transaction multiples at meaningful premiums over where MGM Resorts currently trades. The divestiture underscores MGM Resorts’ exceptional financial stewardship, delivering substantial value well beyond the original acquisition price,” said Jonathan Halkyard, CFO and treasurer of MGM Resorts International, in a statement. “We appreciate VICI, as the real estate owner of MGM Northfield Park, working constructively with Clairvest to facilitate a new lease agreement.”
MGM acquired the former Hard Rock Rocksino Northfield Park in July 2018 for some $275 million.
The horse track along Northfield Road dates back to the 1930s with the Hard Rock adding casino gaming machines in 2009 after Ohio voters legalized gambling in the state.
The deal to switch operators is expected to be finalized early next year.
Clairvest has some 36 gaming assets in its portfolio.
“Northfield Park is a high-quality asset in a compelling location, and we are looking forward to entering a new chapter of our firm’s decades-long history of investing in the gaming industry with VICI as our partner,” said Michael Wagman, Clairvest president and managing director, in a statement.
This article originally appeared on Akron Beacon Journal: MGM Northfield Park Racino operations sold for $546 million. Who’s taking over?
Reporting by Craig Webb, Akron Beacon Journal / Akron Beacon Journal
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