Churchill Downs Incorporated (CDI) announced the successful completion of its acquisition of Ellis Park Racing & Gaming in Henderson, Kentucky, for a cash consideration of $79 million. The acquisition was subject to certain working capital and other purchase price adjustments. With this purchase, CDI also gains the opportunity to build a track extension facility with historical racing machines in Owensboro, Kentucky.
The Kentucky Horse Racing Commission approved the transaction, allowing CDI to move forward with the purchase. The company funded the acquisition with cash on hand and through its existing credit facility.
Ellis Park, situated north of the Ohio River and south of Evansville, Indiana, holds historical significance as it celebrated its 100th year of racing this year. Known as the historic home of summer thoroughbred racing in Kentucky, Ellis Park also features a gaming facility venue with approximately 300 historical racing machines.
Bill Carstanjen, the CEO of CDI, expressed enthusiasm about the acquisition, stating that the team is already working diligently in both Henderson and Owensboro. CDI plans to invest in the racing infrastructure at Ellis Park and capitalize on the historical racing opportunity in Owensboro, which will contribute to significant purse improvements.
Future Investments and Expansion Plans:
CDI has initiated planning for critical investments in the racing infrastructure at Ellis Park and the development of Owensboro Racing & Gaming. The latter will be a track extension and entertainment venue situated at Owensboro’s Towne Square Mall, offering 600 historical racing machines, a simulcast wagering center, and various food and beverage offerings.
Over the next year, CDI is committed to investing approximately $75 million in Henderson and Daviess Counties, in addition to the initial purchase price, to enhance the facilities and overall experience for patrons.
The successful completion of the acquisition of Ellis Park Racing & Gaming marks a significant milestone for Churchill Downs Incorporated. With the addition of Ellis Park to its portfolio, CDI strengthens its position in the Kentucky racing market and gains access to a well-established gaming facility. The company’s ambitious expansion plans in Owensboro demonstrate its commitment to investing in the local communities and promoting growth in the racing and gaming industry in Kentucky.