NASCAR, sanctioning body of the US stock-car racing series, has today (Wednesday) agreed a $2bn (£1.58bn/€1.79bn) deal to acquire International Speedway Corporation (ISC), operator of 13 leading motorsport facilities, including Daytona International Speedway.
ISC has entered into an agreement and plan of merger with NASCAR Holdings for the deal.The transaction, which is expected to close later this year, is conditioned on the approval of a majority of the aggregate voting power represented by the shares of ISC Class A Common Stock and ISC Class B Common Stock not owned by the controlling shareholders of ISC, voting together as a single class. The transaction is also subject to other customary closing conditions.
In connection with the transaction negotiations, a class action lawsuit on behalf of ISC shareholders challenging the deal has chosen to not challenge the fairness of the transaction price. Today’s announcement comes after NASCAR in November submitted a non-binding offer to acquire all outstanding shares of Class A common stock and Class B common stock of ISC not already owned by the controlling shareholders of NASCAR.
The intention of the deal is to combine ISC and NASCAR as one privately run group of companies led by the France family. At the time, the France family stressed their long-term commitment to the sport, along with its interest in maintaining its current ownership in ISC, meaning that no other outside offers were likely to be considered.
As well as Daytona International Speedway (pictured), home of the iconic Daytona 500 race, ISC owns and/or operates Talladega Superspeedway in Alabama; Michigan International Speedway located outside Detroit; Richmond Raceway in Virginia; Auto Club Speedway of Southern California near Los Angeles; Kansas Speedway in Kansas City; ISM Raceway near Phoenix, Arizona; Chicagoland Speedway and Route 66 Raceway near Chicago; Homestead-Miami Speedway in Florida; Martinsville Speedway in Virginia; Darlington Raceway in South Carolina; and Watkins Glen International in New York.
In addition, ISC owns One Daytona, the retail, dining and entertainment development across from Daytona International Speedway, and has a 50% interest in the Hollywood Casino at Kansas Speedway.
The deal comes a year after reports suggested the France family was looking to sell NASCAR. The Associated Press news agency said NASCAR began acquiring the remaining public stock in ISC late last year and could now seek investors.