DAYTONA BEACH, FL – International Speedway Corp. (ISC) has completed its acquisition of Raceway Associates, LLC, owner and operator of Chicagoland Speedway and Route 66 Raceway in Joliet, IL. The combined purchase price for the transactions was $102.4 million in cash. In addition, ISC is responsible for $39.7 million of debt on the books of Raceway Associates at the time of closing.
In November 2006, ISC announced it had entered into a purchase agreement with Indianapolis Motor Speedway Corporation to indirectly acquire an additional 37.5 percent interest in Raceway Associates. At the same time, the company announced that, pursuant to the Raceway Associates formation agreement, it would exercise its right to purchase the 25 percent interest held collectively by the eight minority partners of Raceway Associates.
Raceway Associates was formed in 1999 to develop Chicagoland Speedway, a 75,000-seat facility that opened in 2001 and hosts premier motorsports events from the NASCAR NEXTEL Cup, NASCAR Busch, IRL IndyCar and ARCA RE/MAX series. In addition, Raceway Associates owns and operates Route 66 Raceway, a state-of-the-art drag strip and dirt oval facility that conducts a significant number of events throughout the year, including the NHRA POWERade Nationals at Route 66 Raceway in June.
"The close of our acquisition of Chicagoland Speedway and Route 66 Raceway further strengthens our family of premier facilities nationwide," said ISC President Lesa France Kennedy. "In its brief history, Chicagoland Speedway has established a reputation for exciting racing and has become a fixture on the NASCAR NEXTEL Cup Series schedule. In addition, the facility has sold out its events on a season ticket basis since opening in 2001, demonstrating the strong demand for major motorsports in the nation’s third largest media market."
As a result of closing the transactions, ISC is increasing its fiscal 2007 financial guidance. The company now anticipates total revenues will range between $800 million and $820 million. In addition, earnings are expected to range between $3.10 and $3.20 per diluted share.
"This acquisition complements our ongoing strategy of new market expansion to help drive future growth," said France Kennedy. "Going forward, we expect to build upon the prior success of Chicagoland by further enhancing fan and guest amenities. In addition, as we have done at our other facilities, we plan to leverage our strong relationships with marketing partnerships to drive incremental value to the facility and its events."
For more information about ISC, go to: http://www.iscmotorsports.com.
