In a bold move to refocus its empire, MGM Resorts International announced plans to sell the operations of its Northfield Park racetrack and casino in Ohio to private equity firm Clairvest Group for $546 million in cash, the companies said Thursday.
Guided by Weil Gotshal & Manges LLP, MGM struck the deal with Clairvest-managed funds, which were advised by Chapman and Cutler LLP and Duane Morris LLP. The sale, part of MGM’s strategic pivot, underscores the company’s growing emphasis on digital ventures and international expansion.
A $546 Million Hand — and a New Strategy
“At MGM Resorts, our vision is to be the world’s premiere gaming entertainment company,” said Bill Hornbuckle, CEO of MGM Resorts International. “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.”
Once the deal closes, MGM said it expects to reduce its annual rent by $52 million under its master lease with VICI Properties, which owns the Northfield Park property. The company anticipates netting $420 million in proceeds after taxes and transaction costs.
