Churchill Downs Moves Beyond Horseracing

Churchill Downs agrees to buy a Mississippi casino.
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NEW YORK (

TheStreet

) --

Churchill Downs

(CHDN) - Get Report

is rising after it agreed to buy a Mississippi casino, moving beyond its core horseracing business.

Churchill bought Harlow's Casino Resort & Hotel in Greenville, Miss., for $138 million from private investment groups Levine Leichtman Capital Partners and Oak Hill Advisors; and private investor, Jess M. Ravich.

The acquisition is expected to close in the next three to six months and add 27 cents to 31 cents per share to Churchill's earnings in the year immediately following the deal's closing.

This is the first time Churchill has purchased a pure casino. The company has been looking to expand its presence as race tracks have seen a dip in attendance, recently buying wagering site Youbet.com.

Shares of Churchill are up 1.4% to $35.85 in afternoon trading.

--Written by Jeanine Poggi in New York.

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