Clairvest Group has completed the sale of Casino New Brunswick, a Canadian casino and hotel complex, to Great Canadian Gaming Corp. As a result of the closing, Clairvest has received about C$57 million in proceeds.
TORONTO, ON–(Marketwired – October 01, 2015) – Pursuant to a statement released on May 12, 2015, Clairvest Group Inc. (TSX: CVG) (“CVG”), together with Clairvest Equity Partners III Limited Partnership (“CEP III”, collectively “Clairvest”), announced today it completed the sale of Casino New Brunswick to Great Canadian Gaming Corporation, following the transaction’s approval by the New Brunswick Lotteries and Gaming Corporation.
In 2008 Clairvest formed a group which won an open government request for proposal to build and operate the first and only casino complex in New Brunswick, located in the city of Moncton. Casino New Brunswick commenced operations in May 2010 and now generates annual gaming revenues in excess of $50 million. The casino is part of a three building complex which includes the casino, a 128-room 4.5 star hotel and a multi-purpose entertainment center. Casino New Brunswick has become a premier entertainment destination to the community of Moncton and visitors from across the Province and Canada.
Upon completion of the sale, Clairvest received gross proceeds of approximately $57 million, which is subject to customary working capital adjustments. Consistent with its beneficial ownership, Clairvest Group Inc. realized 25% of this amount, or approximately $14 million, compared to the June 30, 2015 carrying value of $9.2 million.
“We are very proud of the management team and staff at Casino New Brunswick for their vital role in the casino’s growth and success over the last few years. Great Canadian Gaming is acquiring a great asset and team and we wish the new partnership continued success,” said Jeff Parr, Co-CEO and Managing Director of Clairvest.
Clairvest Group Inc. is a private equity management firm that invests its own capital, and that of third parties through the Clairvest Equity Partners limited partnerships, in businesses that have the potential to generate superior returns. In addition to providing financing, Clairvest contributes strategic expertise and execution ability to support the growth and development of its investee partners. Clairvest realizes value through investment returns and the eventual disposition of its investments.