Lone Star Park Agrees to $100 Million Magna Deal

Lone Star Park Agrees to $100 Million Magna Deal
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The owners of Lone Star Park at Grand Prairie agreed Wednesday to sell the horse track to Magna Entertainment Corp. (MEC) for about $100 million.

Magna has agreed to buy the Texas track for $80 million in cash and assumption of certain liabilities, including a capital lease obligation of approximately $19 million. The transaction is subject to regulatory approval and is expected to close in the second quarter of 2002.

"Lone Star Park has had unprecedented success in its short history, and now the baton is being passed to Magna Entertainment Corp., a financially strong and committed ownership group," said track chairman Bob Kaminski.

Magna Entertainment, whose parent company is Magna International of Canada, currently operates 10 tracks in the United States and Canada as well as simulcast wagering venues at those sites.

The agreement has MEC acquiring the racing assets of Lone Star Race Park Ltd., a partnership group that developed and operates Lone Star Park, with the partnership retaining some non-racing assets.

"The acquisition of Lone Star Park at Grand Prairie represents another step in MEC's program of expanding its racing and wagering operations through the ownership of the country's premier racetrack properties," said Frank Stronach, chairman of MEC. "We are delighted to welcome the management and staff of Lone Star Park to the MEC family and we are committed to maintaining excellent relations with the City of Grand Prairie."

Kaminski said that there will be no change in management at the track, although he will step down as chairman once the transaction is completed. He will remain with the track in an advisory position.

"I'll continue to interface with the City of Grand Prairie and be involved in certain legislative issues impacting the industry," Kaminski said. "Other than that, racing at Lone Star Park in 2002 should be no different than it was in the past. These are exciting times for Lone Star Park and Texas horse racing."

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