Churchill Downs Incorporated (CDI) has signed a definitive purchase agreement to acquire substantially all assets from Peninsula Pacific Entertainment (P2E) for $2.48bn.
Assets included in the deal are P2E’s properties in Virginia and New York, along with the operations of its Sioux City casino.
The purchase agreement is expected to complete by the end of this year, pending approvals from the Virginia Racing Commission, the New York State Gaming Commission and the Iowa Racing & Gaming Commission.
In Virginia, CDI will acquire the Colonial Downs Racetrack and six “Rosie’s Gaming Emporium” historical horseracing facilities across the state.
The del Lago Resort & Casino in Waterloo, New York will also change hands as part of the agreement. CDI will acquire the 96,000 square-foot casino, which is comprised of almost 1,700 slot machines, 80 table games, a 205-room hotel and nine restaurants.
The deal also includes the operations of the Hard Rock Hotel & Casino in Sioux City, Iowa. The casino contains 639 slot machines, 20 table games, a 54-room hotel.
Under the terms of the deal, P2E plans to sell the 45,000 square-foot property to a third party, but CDI will continue to operate the casino and lease the Sioux City Property from that third party owner.
“This unique set of assets expands our geographic footprint and provides additional scale,” said Bill Carstanjen, CEO of CDI. “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.”
Assets that are not included in the transaction are P2E’s gaming license in Louisiana and its casino development rights in Cedar Rapids, Iowa.
