July 16, 2024 2 min read

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Accel Entertainment to Acquire Fairmount Holdings in a $35M Deal

The agreement has been approved by the two companies’ leaderships and is expected to close in Q4 2024

Accel Entertainment, a leading distributed gaming operator in the US, announced that it has entered into an agreement to acquire Fairmount Holdings, the owner of FanDuel Sportsbook & Horse Racing.

The deal will see Accel Entertainment pay $35 million for the acquisition, payable to the sellers as 3.45 million shares of Accel Class A-1 common stock. The transaction will provide the buyer with a promising single-site racetrack and future casino, expanding its gambling presence in America.

The acquisition is expected to accelerate Accel’s long-term financial model with high return growth at accretive margins. Upfront buildout costs will be covered by the company’s existing revolver facility.

According to the official release, Fairmount generated $29 million in revenue and modest adjusted EBITDA last year. Accel plans to bolster the company’s assets by investing another $85-95 million in the construction of a temporary and then permanent casino. A part of the money will also fund improvements to the track.

The deal will complement Accel’s steadily growing, route-based footprint, the announcement noted. The newly acquired assets will be a “cornerstone in a local gaming platform that builds on Accel’s capabilities and strengths as a leading route-based operator.”

The agreement has been approved by the two companies’ leaderships and is expected to close in Q4 2024. Wells Fargo acted as exclusive financial advisor, while Lewis Rice served as legal counsel to Fairmount. Accel Entertainment, on the other hand, was counseled by Will & Emery.

The Deal Will Benefit the Local Community

Accel Entertainment’s co-founder, president, CEO and director, Andy Rubenstein, commented on the arrangement, saying that his team is excited to partner with Fairmount’s leadership and create exciting gaming, betting and racing experiences. He also tanked Mayor Jeff Stehman of Collinsville and all state representatives who supported the deal.

We are excited to be a part of an almost 100-year-old southern Illinois institution in Fairmount Park and support the Illinois agriculture and equine industries.

Andy Rubenstein, CEO, Accel Entertainment

Mayor Jeff Stehman himself commented on the deal, saying that he is delighted that Accel Entertainment has decided to purchase FanDuel Sportsbook & Horse Racing.

This move is a testament to the vitality and potential of Collinsville. It will undoubtedly spur economic development along the Collinsville road corridor, creating jobs and bolstering our local economy.

Mayor Jeff Stehman

In other news, Accel Entertainment secured a license in Nevada a few months ago.

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