After entering into a definitive agreement in April this year to purchase the Grand Victoria Casino for $327.5 million, MGM Resorts International (NYSE: MGM) announced Tuesday that along with its venture partner, it has finalized the sale of the Elgin, Illinois property to Eldorado Resorts Inc.
The property at the time of the April announcement was owned equally by MGM Resorts International and a Pritzker family limited partnership, RBG LP. The cash deal, subject to a customary working capital adjustment, will reportedly further grow Eldorado’s reach in the Chicago-area market.
According to the official press release…
The Las Vegas-based global hospitality and entertainment company received its 50% share of the net proceeds of the sale after transactions costs, or about $162 million.
Executive Vice President and Chief Financial Officer for MGM Resorts International, Dan D’Arrigo said…
“We thank the employees of Grand Victoria Casino, who have made it a tremendous success over the years, and wish them all the best in the future.”
The MGM Resorts portfolio encompasses 28 hotel offerings and in 2018 opened MGM COTAI in Macau and the first Bellagio-branded hotel in Shanghai. It also owns 56% of MGM China Holdings Limited (SEHK: 2282), which owns MGM MACAU and MGM COTAI, and 50% of CityCenter in Las Vegas, which features ARIA Resort & Casino.
It is also developing MGM Springfield in Massachusetts, which is slated to open August 24, 2018.
In 2005, Grand Victoria’s co-owner and former manager, Mandalay Resort Group, was acquired by MGM Resorts for $7.9 billion, making it an equal partner of the casino with Hyatt Gaming affiliate RBG LP at the time.
Licensed in 1994, the Grand Victoria reportedly had gross receipts of $168.7 million in 2017, an increase of 3.4% from the year prior, according to the Illinois Gaming Board. Tax revenue from the Grand Victoria added $45 million to the state’s coffers, a 4.6% gain from 2016.