Clairvest Group has agreed to sell its stake in Casino New Brunswick, a Canadian casino and hotel complex, to Great Canadian Gaming Corp. If the deal closes according to “anticipated terms,” Clairvest will receive about C$55 million in proceeds. The other seller in the transaction is Sonco Gaming New Brunswick Limited Partnership. In a separate statement, Great Canadian Gaming Corp said it has agreed to buy Casino New Brunswick for about C$95 million.
TORONTO, ON–(Marketwired – May 12, 2015) – Clairvest Group Inc. (TSX: CVG) (“CVG”), together with Clairvest Equity Partners III Limited Partnership (“CEP III”, collectively “Clairvest”), announced today that it has entered into an agreement to realize on its interest in Casino New Brunswick. The proposed transaction is subject to the consent of the New Brunswick Lotteries and Gaming Corporation and requires regulatory approvals.
Should a transaction close on anticipated terms, Clairvest will receive gross proceeds of approximately $55 million. Consistent with its beneficial ownership, Clairvest Group Inc. would realize 25% of this amount, or approximately $14 million, compared to the December 31, 2014 carrying value of $6.4 million.
Details of the proposed transaction are contained in a news release issued today by Great Canadian Gaming Corporation, which is appended to this release.
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.