GREENVILLE, MS-Churchill Downs Inc. has acquired Harlow's Casino Resort & Hotel for about $138 million. The acquisition of the casino property follows its licensure by the Mississippi State Gaming Commission.
The Louisville, KY-based company, which owns the racetrack that hosts the Kentucky Derby, bought the property from Levine Leichtman Capital Partners. The Los Angeles-based investor provided a structured equity investment through its Levine Leichtman Capital Partners III, a $500 million fund that has yielded a 29% IRR and a 2.3x cash-on-cash return.
"The Harlow's investment has been very successful for our partners, our management team and all of the Company's stakeholders,” says Lauren Leichtman, CEO of Levine Leichtman. “We are proud of this first-class gaming facility, which has exceeded all expectations of growth and popularity since it opened its doors."
Churchill Down’s COO William Carstanjen says the Harlow’s acquisition helps to diversify the company’s business and is part of its growth strategy.
Located on 69 acres of leased land near the Mississippi River, Harlow’s Casino Resort & Hotel features a 33,000-square-foot gaming floor with 841 Class III slot machines, 23 table games and a poker room. In addition it boasts a five-story, 105-room attached hotel, a 2,600-seat entertainment center and three separate dining areas. It employs approximately 480 people.
Harlow’s Casino Resort & Hotel was constructed in 2006 and 2007 and opened in November 2007. It sits at the base of a new $336 million U.S. Highway 82 bridge, which connects Harlow's to the neighboring state of Arkansas.
Investment banking firm Houlihan Lokey advised Harlow's Casino Resort & Hotel on the sale.
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