LAS VEGAS (KLAS) — MGM Resorts International has sold Circus Circus to an affiliate of Treasure Island owner Phil Ruffin for $825 million.
The move was made as part of MGM’s effort to lighten its capital load while maximizing it’s financial and operational efficiency.
“The company [MGM Resorts] expects to utilize the proceeds from this transaction to enhance its capital allocation strategy and complement its strategic and operational flexibility,” said Jim Murren, chairman and CEO of MGM.
Ruffin said he is thrilled to add Circus Circus to his casino portfolio, touting its role as an anchor for the north end of the Strip since it opened in 1968. He noted his respect for the MGM team, who originally obtained the property in 2005 during the Mandalay Resort Group acquisition.
Circus Circus employs 2,300 employees and features the famous Adventuredome theme park, a 10-acre RV park and 37-acre festival grounds. Legacy Portfolio Properties President, Ann Hoff, thanked the employees for their hard work on behalf of MGM, saying they have “worked diligently to ensure the long-term success of this iconic property.”
The purchase is expected to close in the fourth quarter of 2019, with $662.5 million paid in cash and a $162.5 million note due in 2024.