Clairvest and MGM Northfield Park Set for Acquisition Deal
Clairvest Announces Major Acquisition
Clairvest Group Inc. (TSX: CVG) has made a significant announcement regarding its plans for the future in the gaming sector. The company, in collaboration with Clairvest Equity Partners VII, has come to an agreement to acquire MGM Northfield Park. This move represents an investment of US$546 million that aligns with Clairvest's momentum in the industry.
Investment Breakdown and Impact
The investment involves Clairvest, along with funds that it manages and other co-investors, contributing approximately US$165 million in equity. This stake will represent about 4% to 5% of CVG’s book value at this time, showcasing the strategic role this acquisition plays in Clairvest’s portfolio. This marks Clairvest's 17th venture in the gaming sector, continuing its impressive legacy of 25 years in successful investments.
About MGM Northfield Park
MGM Northfield Park is a regional racino, situated in Ohio and primarily catering to the Cleveland and Akron areas. The facility boasts 74,000 square feet dedicated to gaming, featuring around 1,600 video lottery terminals, a half-mile harness racetrack, various dining options, and an entertainment venue with 1,820 seats. This variety makes it a significant entertainment destination in the region.
Commitment to Growth
Michael Wagman, the President and Managing Director of Clairvest, expressed enthusiasm about the growth potential at Northfield Park. He emphasized the company’s dedication to enhancing the entertainment experience for the local community. Clairvest plans to build on the existing foundation established by MGM while reinforcing their commitment to expansion in the forthcoming years.
Regulatory Approvals Required for Closing
The acquisition's completion is contingent upon obtaining necessary regulatory approvals within Ohio, including gaming and racing licenses and anti-trust clearance. Currently, the involved parties expect the deal to close in the first half of the following year.
Representation and Legal Support
In the course of this transaction, Clairvest has engaged Chapman and Cutler LLP for corporate affairs and Duane Morris LLP to navigate regulatory matters, ensuring a comprehensive approach to the acquisition process.
About Clairvest
Clairvest’s journey began in 1987, with a mission to partner with entrepreneurs to cultivate strategically significant businesses. Renowned for its success, Clairvest has amassed over CAD $4.6 billion in capital management. By investing its capital along with that of third parties through Clairvest Equity Partners, the firm has backed 70 distinct platform companies and demonstrated top-quartile performance over time.
Frequently Asked Questions
What is the nature of Clairvest's acquisition?
Clairvest is acquiring MGM Northfield Park, a significant move in the gaming sector for an investment of US$546 million.
What are Clairvest's plans for Northfield Park?
The company intends to build upon MGM's foundation, enhancing community entertainment while expanding operations.
How much equity will Clairvest invest?
Clairvest, along with co-investors, will contribute approximately US$165 million in equity toward the acquisition.
When is the expected closing date for the transaction?
Clairvest anticipates that the deal will close in the first half of the upcoming year, pending regulatory approvals.
What is Clairvest’s history in the gaming industry?
With this acquisition, Clairvest marks its 17th investment in the gaming sector, showcasing a longstanding commitment to this industry.
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