Las Vegas-based MGM Resorts International announced Thursday that it has agreed to sell operations at MGM Northfield Park, a racino near Cleveland, to private equity funds managed by Clairvest Group Inc. for $546 million in cash.
The deal, which is expected to close in the first half of 2026 pending regulatory approval, values the property at roughly 6.6 times adjusted EBITDA for the 12 months ended June 30, according to MGM. The company expects approximately $420 million in net proceeds after taxes and transaction costs.
MGM Northfield Park, which reported $137 million in adjusted EBITDAR (earnings before interest, taxes, depreciation, amortization and rent) last year, will be removed from the company’s master lease with property owner Vici Properties, reducing MGM’s annual lease payments by about $54 million when the sale closes.
“This is a fantastic property with great opportunities ahead,” MGM Resorts President and CEO Bill Hornbuckle said in a statement. “To achieve (its vision of being the world’s number one gaming entertainment company), we are focused on growing our digital business, developing our international expansion opportunities and continuing to invest in our leading integrated resorts domestically.”
The sale comes just two days after MGM announced its decision to withdraw its application for a casino license in New York City, a project estimated to cost about $2.3 billion, according to analysts.
Gaming industry analysts at Jefferies LLC noted that the 6.6x sales multiple represents one of the highest transaction valuations for a single regional casino operation since the pandemic, underscoring the strong pricing that MGM secured.
“When MGM’s cost of capital is applied to the rent attributed to this transaction, the full valuation would be approximately 10 times,” the note said.
MGM Growth Properties LLC acquired the Northfield operations in 2018 from Hard Rock for $275 million. The next year, MGM Resorts took over the business from MGP for $275 million and renamed the property.
The 74,000-square-foot venue features nearly 1,600 video lottery terminals, a half-mile harness racing track, 10 dining options and an 1,820-seat entertainment venue.
“This is an excellent result for MGM Resorts and demonstrates consistency in driving transaction multiples to meaningful premiums over where MGM Resorts currently trades,” said Jonathan Halkyard, Chief Financial Officer and Treasurer of MGM Resorts. “The sale underscores MGM Resorts’ exceptional financial stewardship and delivers significant value well beyond the original acquisition price.”
Contact David Danzis at ddanzis@ theplayerlounge.com or 702-383-0378. Follow @AC2Vegas_Danzis on X.
