Churchill Downs Incorporated (CDI) has signed an agreement to acquire a majority stake in the newly opened Casino Salem in New Hampshire.
The initial phase of Live! Casino Salem opened last week with approximately 100 historical horse racing machines (HRMs) and 13 live table games.
Located at The Mall at Rockingham Park, Casino Salem was developed as a joint venture between The Cordish Companies and local developers Joe Faro and Sal Lupoli.
On Monday, CDI entered into a definitive agreement to acquire 90 per cent of the outstanding equity interest in Casino Salem for $180 million in cash, comprised of the 51 per cent stake held by The Cordish Companies and 39 per cent from Faro and Lupoli’s F&L Gaming.
F&L Gaming will maintain a 10 per cent stake in Casino Salem and Faro and Lupoli will continue to provide their local expertise to complete the development project.
Over the coming months, CDI will finalize plans and commence construction of the future phases of the project, including a rebranding of the venue, an expansion of the gaming floor, and several food and beverage concepts.
“New Hampshire is an exciting opportunity, and this transaction – and our new partnership with Joe Faro and Sal Lupoli – allows us to develop a regional destination to draw patrons to Salem from across the growing New England market,” said CDI chief executive Bill Carstanjen.
“We look forward to sharing more about our plans to build an expanded, state-of-the-art gaming and entertainment facility in Salem and to support charitable organizations throughout New Hampshire.”
In a joint statement, Faro and Lupoli said: “We are thrilled to move forward in partnership with Churchill Downs, one of the country’s preeminent gaming and entertainment operators.
“With our vision for Salem, we remain committed to driving economic stimulus to our local economy, creating new jobs, and increasing tourism while delivering a world-class destination that will create lasting benefits for the community for decades.”
CDI will finance the Salem transaction using its existing credit facility, with closing subject to customary conditions and receipt of regulatory approval from the New Hampshire Lottery Commission.
The transaction is anticipated to close during the third quarter of this year.
Separately from Casino Salem, CDI will continue to operate its Chasers Poker Room in Salem.
Shares in Churchill Downs Incorporated (NASDAQ:CHDN) closed 1.03 per cent higher at $106.89 per share in New York Monday.
