{"id":325374,"date":"2024-07-16T15:49:51","date_gmt":"2024-07-16T20:49:51","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=325374"},"modified":"2024-07-16T15:49:51","modified_gmt":"2024-07-16T20:49:51","slug":"accel-entertainment-buys-fairmont-holdings-for-35m-in-stock","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/accel-entertainment-buys-fairmont-holdings-for-35m-in-stock\/","title":{"rendered":"Accel Entertainment Buys Fairmont Holdings for $35M in Stock"},"content":{"rendered":"

Accel Entertainment (NYSE: ACEL) announced the acquisition of Fairmont Holdings for $35 million in equity, adding a horse racetrack to the video gaming terminal (VGT) firm\u2019s portfolio of assets.<\/p>\n

\"Accel\"
Horses break from the starting gate during a race at FanDuel Sportsbook & Horse Racing in Collinsville, Ill. Accel Entertainment is acquiring operator Fairmont Holdings for $35 million in stock. (Image: YouTube)<\/figcaption><\/figure>\n

Privately held Fairmont owns FanDuel Sportsbook & Horse Racing in Collinsville, Ill. The venue has 65 live race days and 435 horse races per year. The track is nearly a century old and was rebranded as FanDuel Sportsbook & Horse Racing in 2020. Accel is one of the largest distributed gaming operators in the US. Last year, Fairmont posted $29 million in sales and \u201cmodest earnings before interest, taxes, depreciation, and amortization (EBITDA).\u201d<\/p>\n

Accel plans to invest $85 – $95 million (over and above the purchase price) to fund temporary and then permanent casino construction and modest track investments. Accel\u2019s five-year forecast suggests an Adjusted EBITDA potential of $20 to $25 million and over 75% free cash flow conversion — pointing to a compelling cash flow return on capital,\u201d according to a statement issued by the two companies.<\/p><\/blockquote>\n

Accel is a provider of video gaming terminals<\/a> (VGTs) in Illinois and several other states. Accel\u2019s VGTs are found in businesses such as restaurants, bars, taverns, convenience stores, liquor stores, truck stops, and grocery stores.<\/p>\n

Fairmont Deal Fits Accel Acquisition Profile<\/h2>\n

The Fairmont transaction jibes with Accel\u2019s track record of bolt-on acquisitions that expand the buyer\u2019s route-based capabilities. With Fairmont, the suitor accomplishes while spreading its wings into another corner of the broader gaming industry.<\/p>\n

\n

Plus, there are geographic advantages with FanDuel Sportsbook & Horse Racing being the only horse racing property near the St. Louis area. Post-acquisition plans call for a temporary casino to be built at the site next year with a permanent brick-and-mortar casino to follow in 2027. Accel is expected to make a significant capital contribution to that project. The gaming venue will feature 500 machines, 24 tables, and a sportsbook.<\/p>\n<\/div>\n

\u201cThe transaction has two parts — acquisition of Fairmount, the holder of the license and owner of the underlying site assets, for approximately $35 million of equity consideration, and $85 – $95 million of expected casino build-out and track investments funded from Accel\u2019s credit facility,\u201d according to the statement.<\/p>\n

Accel is forecasting \u201cattractive return on capital\u201d via the transaction, which is scheduled to close in the fourth quarter<\/strong>.<\/p>\n

Deal Could Provide Runway for Future Growth<\/h2>\n

In aggregate, Illinois is one of the largest gaming markets in the country, but in Southern Illinois\/St. Louis area, there is fragmentation and many of the operators are smaller independents, indicating there\u2019s some room for consolidation. That could be to Accel\u2019s benefit.<\/p>\n

\u201cThis transaction accesses a \u2018local gaming\u2019 total addressable market (TAM) estimated to be approximately $15 billion in size — or more than twice our existing route-based TAM,\u201d according to the company. \u201cLocal gaming assets remain largely unconsolidated, under family or small business ownership, and far less often contested by larger gaming players.\u201d<\/strong><\/p>\n

Accel did not mention if the casino would bear the FanDuel — one of the most valuable<\/a> in the gaming industry — but is attached to another casino in Illinois.<\/p>\n","protected":false},"excerpt":{"rendered":"

Accel Entertainment (NYSE: ACEL) announced the acquisition of Fairmont Holdings for $35 million in equity, adding a horse racetrack to the video gaming terminal (VGT) firm\u2019s portfolio of assets. Privately held Fairmont owns FanDuel Sportsbook & Horse Racing in Collinsville, Ill. The venue has 65 live race days and 435 horse races per year. The […]<\/p>\n","protected":false},"author":46,"featured_media":325375,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,32093,86430,86438],"tags":[81903,81966,86455,86457],"acf":[],"yoast_head":"\nAccel Entertainment Buys Fairmont Holdings for $35M in Stock<\/title>\n<meta name=\"description\" content=\"Accel Entertainment Buys Fairmont Holdings for $35M in Stock.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/accel-entertainment-buys-fairmont-holdings-for-35m-in-stock\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Accel Entertainment Buys Fairmont Holdings for $35M in Stock\" \/>\n<meta property=\"og:description\" content=\"Accel Entertainment Buys Fairmont Holdings for $35M in Stock.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/accel-entertainment-buys-fairmont-holdings-for-35m-in-stock\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2024-07-16T20:49:51+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2024\/07\/FD.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"720\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/accel-entertainment-buys-fairmont-holdings-for-35m-in-stock\/\",\"url\":\"https:\/\/www.casino.org\/news\/accel-entertainment-buys-fairmont-holdings-for-35m-in-stock\/\",\"name\":\"Accel Entertainment Buys Fairmont Holdings for $35M in Stock\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/accel-entertainment-buys-fairmont-holdings-for-35m-in-stock\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/accel-entertainment-buys-fairmont-holdings-for-35m-in-stock\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2024\/07\/FD.jpg\",\"datePublished\":\"2024-07-16T20:49:51+00:00\",\"dateModified\":\"2024-07-16T20:49:51+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Accel Entertainment Buys Fairmont Holdings for $35M in Stock.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/accel-entertainment-buys-fairmont-holdings-for-35m-in-stock\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/accel-entertainment-buys-fairmont-holdings-for-35m-in-stock\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/accel-entertainment-buys-fairmont-holdings-for-35m-in-stock\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2024\/07\/FD.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2024\/07\/FD.jpg\",\"width\":1280,\"height\":720,\"caption\":\"Horses break from the starting gate during a race at FanDuel Sportsbook & Horse Racing in Collinsville, Ill. 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