Canadian private equity firm Clairvest Group agreed to merge its portfolio company Chilean Gaming Holdings with Sun Dreams SA creating one of the largest casino operating conglomerates in Latin America. Financial terms were not disclosed and Clairvest will remain an investor in the merged conglomerate.

(PE HUB) Canadian mid-market private equity firm Clairvest Group has agreed to merge portfolio company Chilean Gaming Holdings with Sun Dreams SA, a Las Condes, Chile-based operator of casino properties.

No financial terms were disclosed.

In a separate statement, Sun International Ltd, Sun Dreams’ parent organization, said the deal will create one of Latin America’s largest gaming groups, owning and operating casino assets in Argentina, Chile, Colombia and Peru.

Clairvest, which first backed Chilean Gaming in 2006, will be an investor in the merged business.

Last month, Clairvest closed its sixth mid-market fund, raising about $1.1 billion (US$850 million).

PRESS RELEASE
Clairvest Signs MOU to Merge Chilean Gaming Holdings With Sun Dreams

Clairvest Group Inc. (TSX: CVG) today announced that it and Clairvest Equity Partners III (collectively, “Clairvest”) has entered into a memorandum of understanding (“MOU”) to merge Chilean Gaming Holdings with Sun Dreams S.A., another large South American operator of casino properties (the “Merger”). The details of the Merger and related transactions are outlined in the news release of Sun International Limited which was issued today.

The Merger is subject to several key conditions, including completion of due diligence and entering into definitive documentation.

About Clairvest
Clairvest Group Inc. is a private equity management firm that invests its own capital, and that of third parties through the Clairvest Equity Partners limited partnerships, in businesses that have the potential to generate superior returns. In addition to providing financing, Clairvest contributes strategic expertise and execution ability to support the growth and development of its investee partners. Clairvest realizes value through investment returns and the eventual disposition of its investments.