The global gaming and entertainment company, MGM Resorts International, confirmed its intention to sell the operations of MGM Northfield Park in a deal with a price tag of half a billion dollars.
The sale of MGM Northfield Park's operation has a $546m price tag
Back in July 2018, MGM Growth Properties LLC acquired the Hard Rock Rocksino Northfield Park.
Then, in 2019, MGM Resorts acquired the operations of MGM Growth Properties in a $275m deal that included purchase price adjustments.
Shortly after, the venue was rebranded to MGM Northfield Park.
Now, MGM Resorts has confirmed it has reached an agreement to sell the operations of the aforementioned venue to private equity funds managed by Clairvest Group Inc.
According to a statement released by the former, the cost of the transaction is $546m and it is "subject to customary purchase price adjustments."
In light of the aforementioned acquisition, MGM Resorts used the services of Jefferies LLC and SMBC Nikko Securities America, Inc. as advisors.
Moreover, the company used legal counsel from Weil, Gotshal & Manges LLP.
The newly announced transaction is expected to be completed in the first half of 2026 and is subject to receiving the necessary regulatory approvals and other customary closing conditions.
The strategic move complements the company's growth
Jonathan Halkyard, MGM Resorts' CFO and Treasurer, said about the strategic business move: "This is an excellent result for MGM Resorts and demonstrates consistency in driving transaction multiples at meaningful premiums over where MGM Resorts currently trades."
Moreover, the executive pointed out: "The divestiture underscores MGM Resorts' exceptional financial stewardship, delivering substantial value well beyond the original acquisition price."
Bill Hornbuckle, MGM Resorts International's CEO and President, was similarly excited.
"I want to thank our MGM Northfield Park employees who have consistently delivered world-class gaming and entertainment experiences to our guests. This is a great property with great opportunity ahead," he explained.
Finally, Hornbuckle said: "At MGM Resorts, our vision is to be the world's premiere gaming entertainment company. To achieve this vision, we're focused on growing our digital business, developing our international expansion opportunities, and continuing to invest in our leading integrated resorts domestically."
For the 12 months ending June 30, 2025, MGM Northfield Park recorded Adjusted EBTIDAR of approximately $137m.
This means that the announced purchase price represents a 6.6x multiple on the Adjusted EBITDA result for the property in the last year.
