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Private Equity Firms to buy Harrah's

December 20, 2006

Private equity firms Texas Pacific Group and Apollo Management have agreed to purchase Harrah's Entertainment Inc., the owner of Louisiana Downs and co-owner of Turfway Park, for approximately $17.1-billion.

Harrah's Entertainment, the world's largest gaming company, owns or operates more than 40 properties. The deal includes the assumption of about $10.7-billion in debt and would be completed in about one year, although Harrah's Entertainment has the option of soliciting superior proposals from third parties for 25 days.

"In Apollo and [Texas Pacific Group], we will have owners who share our vision for Harrah's, are fully supportive of our current strategy and are committed to helping us execute on it. This will be a change in ownership, not a change in direction," Harrah's Chairman Gary Loveman said. "Harrah's management team and its 85,000 talented employees look forward to working with Apollo and TPG as the Company moves into the next phase of its growth and development."

Penn National Gaming Inc., the parent company of Penn National Race Course and Charles Town Races, also considered submitting a bid after Harrah's Entertainment rejected an initial $15-billion buyout offer from Apollo Management and Texas Pacific Group.