LOUISVILLE, Ky. (April 1, 2013) — Churchill Downs Inc. has entered into a definitive purchase agreement to acquire Oxford Casino in Oxford, Maine, for $160 million, to be paid in cash.
The transaction, which is dependent on the Churchill Downs securing a gaming license from the Maine Gaming Control Board, and on other usual and customary closing conditions, is anticipated to close in the fourth quarter of 2013. If certain closing conditions are not satisfied, Churchill could be obligated to pay an $8 million termination fee.
“The acquisition of Oxford continues our focus on investing capital in gaming-friendly states, in newer properties, in what we believe are competitively defensible markets, and at valuations that we believe will result in significant future free cash flow generation at rates of return attractive to our shareholders,” said Robert L. Evans, Churchill Downs Inc. chairman and CEO. “The Oxford team of over 400 employees has done an exceptional job and we look forward to welcoming them into the Churchill Downs family.”
Bob Bahre, a founder of Black Bear Realty Co., LLC, said his primary reason for getting involved in the project was to bring jobs to the region.
The property is owned by Black Bear Realty Co. Oxford opened in June 2012 and underwent an expansion completed in October 2012. It is located on 100 acres about 40 minutes northwest of Portland in the heart of southern Maine. The property includes a 25,000-s.f. single-level gaming floor with 790 Class III slot machines and 22 table games. It also hosts a 140-seat casual restaurant, Oxford Grill, a 12-seat casino bar and a grab-and-go.