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Hollywood Park Completes Acquisition of Casino Magic17 October 1998
INGLEWOOD, Calif. -- Officials at Hollywood Park, Inc. (NYSE: HPK) announced October 15 that the company has completed its $340 million acquisition of Casino Magic Corp. (Nasdaq: CMAG).
"With the closing of this transaction, which we expect will be immediately accretive to Hollywood Park's earnings, the company will become an expanded, more diversified gaming, sports and entertainment operation," Hollywood Park Chairman and CEO R.D. Hubbard said. "The Casino Magic acquisition will provide Hollywood Park with a strong platform to grow our operations while solidifying the company's position as a leading consolidator within emerging gaming jurisdictions. I am confident that our combined management teams will begin to realize revenue enhancement as well as cost savings going forward."
For the first six months of 1998, on a pro forma consolidated basis, the combined company would have had revenues of approximately $328 million and EBITDA of approximately $66 million. It will have six operating casinos in three states, own two card club casinos in California, operate two pari-mutuel race tracks and have combined assets of over $800 million.
A definitive merger agreement was signed between Hollywood Park and Casino Magic in February 1998. Under the terms of the agreement, Hollywood Park acquired Casino Magic for a combination of cash and assumed debt with an aggregate value of approximately $340 million. Hollywood Park purchased in cash each share of Casino Magic common stock for $2.27 per share. Casino Magic had approximately 35.7 million shares outstanding.