Centaur Holdings LLC and global hotel and casino empire Caesars Entertainment Group are in the final stages of the agreement between them. Centaur Holdings LLC are selling two casino possessions to Caesar in the state of Indiana, at a joined evaluated cost of $1.7bn.
The names of the two casinos which are mentioned are Indiana Grand casino in Shelbyville and Hoosier Park in Anderson. Both of the casinos include horse racing tracks, they are real money makers and brought more than $480 million in combined casino revenue in the last financial year.
Hoosier Park and Indiana Grand are not the only casinos that Caesars owns in the state of Indiana. Caesars owns two other casinos: the Horseshoe Southern Indiana Hotel and Casino, situated on the Ohio River in Harrison County and the Horseshoe Hammond Casino on Lake Michigan in northwest Indiana. Indiana Grand and Hoosier Park include dining outlets, more than 2,000 electronic table games, slots, live and simulcast horse racing.
This deal brings large profit for Centaur, as a previous owner of the Hoosier Park and they bought Indiana Grand for $500 million in 2013. On the other hand, any deal is monitored and need approval from the IGC (Indiana Gaming Commission) before it is officially valid.
However, every state has its own law. “In Indiana, one company can own more than two casinos, but this doesn’t apply to the racetrack casinos, which are treated under another component of gaming law,” said IGC Deputy Director Jennifer Reske in the Indiana Business Journal.
Caesars Entertainment President and Chief Executive Officer Mark Frissora in his statement announced: "The addition of Centaur is the first example of our post-emergence, inorganic growth strategy. The acquisition of Centaur represents an excellent opportunity to enter into a growing region.”
Frissora added: "We are impressed with Centaur's operations and culture, and the strong presence it has built in its host communities. Together, we will build on our respective value creation and execution achievements for the benefit of customers, employees, and local partners."
"We believe the acquisition of Centaur is the best use of capital to support our growth plans and the long-term value of Caesars Entertainment. Our network expansion plan is off to a great start with this strategic transaction and we continue to have a strong financial position with solid cash flows to pursue other expansion opportunities with attractive returns."
If there is an approval from the IGC, the whole transfer should be complete in the first half of the next year-2018.