Churchill Downs Bets Big On This 100-Year Old Kentucky Racing Firm

Churchill Downs Inc CHDN has signed a definitive agreement to acquire Ellis Park Racing & Gaming in Henderson, Kentucky, from Enchantment Holdings LLC for $79 million in cash.
The company will also assume Ellis Park's opportunity to construct a track extension facility in Owensboro, Kentucky.
Ellis Park, located north of the Ohio River and just south of Evansville, Indiana, celebrated 100 years of racing this year.
In addition to being known as the home of summer Thoroughbred racing in Kentucky, Ellis Park also features a gaming facility venue with about 300 historical racing machines.
Churchill will acquire all of the outstanding equity of Ellis Entertainment, LLC, the parent company of Ellis Park.
"This is an exciting announcement for the horse racing industry, the cities of Henderson and Owensboro, and the entire Commonwealth of Kentucky," said Kentucky governor Andy Beshear.
The transaction's closing is contingent upon approval by the Kentucky Horse Racing Commission.
The company held $1.9 billion in cash and equivalents as of June 30, 2022.
Price Action: CHDN shares closed lower by 0.87% at $199.65 on Thursday.
Photo Via Company

Overview Rating:

Speculative

0100