GTA West Bundle Deal Closes

Published: May 2, 2018 10:27 am EDT

Great Canadian Gaming Corporation (‘Great Canadian’) and Clairvest Group Inc. (‘Clairvest’), through its Clairvest Equity Partners V partnerships, announced on Tuesday, May 1 that they have successfully completed the acquisition of the gaming assets in the West Greater Toronto Area (the ‘West GTA Bundle’) for a purchase price of approximately $134 million.

Great Canadian and Clairvest established the Ontario Gaming West GTA Limited Partnership (‘the Partnership’), in which Clairvest owns 45 per cent and Great Canadian owns 55 per cent. The Partnership was selected as the successful proponent by the Ontario Lottery and Gaming Corporation (‘OLG’) to operate the following West GTA gaming facilities: OLG Casino Brantford, OLG Slots at Mohawk Racetrack, OLG Slots at Flamboro Downs and OLG Slots at Grand River Raceway.

The Partnership has signed a casino operating and services agreement (‘COSA’) with OLG to take over day-to-day operations of the gaming facilities in the West GTA Bundle. The Partnership has entered into a five-year credit agreement that has funded approximately 65 per cent of the acquisition costs and will provide financing for the initial capital development program of the Partnership.

Effective May 1, 2018, the West GTA facilities will be re-named as Elements Casino Brantford, Elements Casino Flamboro, Elements Casino Grand River and Elements Casino Mohawk. These facilities have a combined total of over 2,500 slot machines, approximately 60 table games, employ more than 1,400 staff and generated approximately $460 million in gross gaming revenue in fiscal 2017/18.

In accordance with the COSA, the Partnership will have the exclusive right to operate these facilities for a minimum period of 20 years.

With the transition process complete, the Partnership will focus on initiatives and capital investments that will modernize and broaden the guest experience at each facility. The Partnership intends to work closely with stakeholders as it enhances and transforms the facilities located in the West GTA Bundle, while maintaining a focus on responsible gambling.

(Great Canadian Gaming Corporation / Clairvest Group Inc.)

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