Churchill Downs Agrees To Acquire Peninsula Pacific Entertainment Assets For ~$2.5B

Churchill Downs Inc CHDN has agreed to acquire substantially all of the assets of Peninsula Pacific Entertainment LLC (P2E) for $2.485 billion.
The acquisition will include all of P2E's assets in Virginia and New York and the operations of its Sioux City casino property.
The transaction is expected to close by the end of 2022.
"This unique set of assets expands our geographic footprint and provides additional scale," said CEO Bill Carstanjen.
The company expects the transaction to be immediately accretive to its free cash flow and EPS.
Churchill Downs plans to fund the P2E Transaction with a combination of new debt and cash on hand, including pending proceeds from the sale of land near Calder Casino. It held $386.3 million in cash and equivalents as of September 30, 2021.
Price Action: CHDN shares closed lower by 2.58% at $217.52 on Friday.