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Derby goes Hollywood
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May 6, 1999: 2:45 p.m. ET
Churchill Downs to buy Hollywood Park operations for $140M in cash
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NEW YORK (CNNfn) - Churchill Downs Inc., the operator of the Kentucky Derby, said Thursday it is buying the Hollywood Park Racetrack and casino and much of the company's southern California property for $140 million in cash.
Under the deal, Churchill Downs (CHDN) will grant Hollywood Park Inc. (HPK) a long-term lease on the Hollywood Park Casino for $3 million per year. The casino is located at the Hollywood Park Racetrack outside of Los Angeles.
Churchill Downs said it will acquire 240 acres of Hollywood Park real estate, including property on the historic Century Boulevard. Hollywood Park said it plans to either further develop or sell the 138 acres of southern California property it is retaining.
Churchill Downs said the deal builds on the company's recent acquisition of the Calder Race Course in Miami.
"We are thrilled at the prospect of expanding our racing operations from coast to coast," said Thomas H. Meeker, president and CEO of Churchill Downs.
The Louisville, Ky.-based racetrack operator said it plans to use its $250 million line of credit to finance the purchase and expects to close the deal in the third quarter of this year. The California Horse Racing Board and other regulators must approve the deal.
Churchill Downs held the 125th running of its flagship race, the Kentucky Derby, on May 1.
Hollywood Park operates casinos and pari-mutuel horse racing facilities in five states and Argentina.
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Churchill Downs
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