Accel Entertainment to Acquire Fairmount Holdings for $35 Million

18.07.2024

Accel Entertainment has announced its plan to acquire Fairmount Holdings, the owner of FanDuel Sportsbook & Horse Racing, for $35 million.

Financial Impact and Investment Strategy

This purchase will be settled through the issuance of 3.45 million shares of Accel Class A-1 common stock. The move is expected to significantly enhance Accel’s presence in the US gambling market by potentially expanding its operations to include a racetrack and casino.

The acquisition is projected to positively impact Accel’s long-term financial health, with expectations of accretive margins and robust return growth. Initial buildout costs will be covered by Accel’s current revolver facility. Fairmount Holdings reported $29 million in revenue and modest adjusted EBITDA last year, highlighting its potential for growth under Accel’s management.

To further capitalize on this acquisition, Accel plans to invest an additional $85–95 million to upgrade Fairmount’s racetrack and develop both temporary and permanent casino facilities. These enhancements are intended to integrate Fairmount into Accel’s route-based business model, reinforcing its regional gaming platform.

Approval and Future Plans

The leadership teams of both Accel and Fairmount have approved the transaction, with the deal expected to close in the fourth quarter of 2024. Wells Fargo served as the exclusive financial advisor for the acquisition, while Lewis Rice provided legal counsel to Fairmount and McDermott Will & Emery represented Accel.

Andy Rubenstein, co-founder, president, CEO, and director of Accel Entertainment, expressed enthusiasm for the partnership with Fairmount’s leadership team. He highlighted the shared vision of delivering exciting gaming, betting, and racing experiences. Rubenstein also acknowledged the support from Collinsville Mayor Jeff Stehman and state representatives, emphasizing Accel’s commitment to supporting Illinois’ agriculture and equine industries.