MGM Resorts International has finalized the sale of its Ohio-based MGM Northfield Park operations to private equity firms managed by Clairvest Group Inc. for a total of $546 million in cash. After accounting for taxes and transaction expenses, the net proceeds are anticipated to be approximately $420 million.
Bill Hornbuckle, the CEO and President of MGM Resorts International, commented on the sale, stating, “MGM Northfield Park is a leading property in the market, backed by a skilled team that has consistently provided exceptional guest experiences. The property has a solid foundation, and we wish the team and new ownership continued success in the next phase of its development.”
Jonathan Halkyard, Chief Financial Officer, noted that this transaction highlights the value of MGM’s operational portfolio while enabling the company to divest a non-essential regional asset at an attractive valuation. “The funds will be utilized to uphold our priorities of maintaining a robust balance sheet, selectively investing in growth opportunities, and returning capital to our shareholders,” he added.
Clairvest, the private equity management firm, remarked that this investment builds upon its 26-year history in the local gaming market and represents its 14th land-based gaming transaction. Over the past two decades, Clairvest has held stakes in 37 gaming assets, including regional casinos, racetracks, suppliers, technology providers, and online gaming platforms worldwide.
For the year ending December 31, 2025, MGM Northfield Park is projected to generate around $142 million in adjusted EBITDAR. As part of this deal, MGM Resorts has also revised its master lease agreement with VICI Properties Inc., resulting in a reduction of annual rent obligations by $53 million.
John Payne, President and Chief Operating Officer of VICI Properties, expressed enthusiasm about welcoming Clairvest to their tenant roster, emphasizing that their proven track record in the gaming industry makes this partnership valuable. “The inclusion of Clairvest reinforces VICI’s ability to ensure continuity and stability across our portfolio while diversifying our tenant base and supporting the strategic opportunities of our existing partners,” he stated.
Jefferies LLC and SMBC Nikko Securities America, Inc. acted as advisors, while Weil, Gotshal & Manges LLP provided legal counsel to MGM Resorts.