DAYTONA BEACH – The family of the late NASCAR founder Bill France Sr. is looking forward to doing the Daytona International Speedway and several other motorsports tracks private.
NASCAR, the privately held stock car racing sanctioned body owned by the france family, late Friday afternoon The family does not own any International Speedway Corp's stock (NASDAQ: NYSE).
ISC is estimated to be $ 1.9 billion, 7.5 percent above the stock's closing price on Friday, according to a Bloomberg News report.
The intention is to combine ISC and NASCAR as one of the privately run group companies, NASCAR announced in a news release posted on the investor relations page of ISC's corporate website late Friday afternoon.
Jim France, chairman and CEO of NASCAR, said in the news release: "In a highly competitive sports and entertainment landscape," said Jim France, Chairman and CEO of NASCAR.
"We believe the industry is undergoing structural changes to this sport for long-term success and this offer represents a positive step forward in that direction," France said.
Until the acquisition of ISC has been completed, "In the interim, NASCAR and ISC intends to continue to work independently," the news release stated.
"The outcome of this prospective offer is not impacting the France family's long-term commitment to the sport, nor is it maintaining its current ownership in ISC, as the France family is not interested in selling shares of ISC at this time," the news release further stated.
Seven-time NASCAR Cup series winner Jimmie Johnson told ESPN that the combination of NASCAR, which oversees the sport of stock car racing, and ISC, which operates and operates the speedway and 12 other motorsports facilities across the country, could be a good thing ,
"My initial reaction is that, eventually, to flexibility (in the) schedule, event dates," Johnson said. "Do you have weekday races?"
"That unity and that collaboration of those two entities combined would be a step in that direction, I would think," the veteran driver added. "It would be hopefully open these doors to let those conversations really happen and progress be made."
The NASCAR has been looking for minority investors (and NASCAR and ISC) for the time being big sponsors, looking for Lowe's Co. "
NASCAR has retained Goldman Sachs & Co. LLC as its financial adviser and Baker Botts as its legal counsel for the acquisition of ISC, according to the news release.
In addition, BDT & Co. has been retained as a financial adviser to the France family.
NASCAR's offer will be reviewed by a special committee of independent ISC board members, using independent legal and financial advisers, according to the news release.
France family members on the ISC board include Jim France and his niece Lesa France Kennedy, ISC CEO.
Mori Hosseini, chairman and CEO of Daytona Beach-based ICI Homes, the Volusia-Flagler area's largest locally based homebuilder, J. Hyatt Brown, chairman of Daytona Beach-based national insurance agency Brown & Brown Inc., which is a public company, and Christy F. Harris, an of-counsel attorney with Kinsey, Vincent, Pyle, LC law firm at Daytona Beach.
Brown will head the committee overseeing the sale of ISC.
ISC stock shares, according to reports from Bloomberg News and ESPN.
In Wall Street, early trading on Friday, ISC stock shares fell.
Following NASCAR's announcement, ISC's stock price was $ 2.74 a share to $ 41.80 in after-hours trading as of 7 p.m. Friday.
"Can not make any comment," Hosseini told The News-Journal late Friday.
The News-Journal was unable to reach Brown for comment.
NASCAR spokesman Jon Schwartz declined to answer questions seeking more information.
"Unfortunately, we can not comment any further on what's in the announcement," he wrote in a text message responding to inquiries from The News Journal.
ISC spokeswoman Gentry Baumline-Robinson late Friday so all questions to the press release.
NASCAR founder Bill France Sr. and brother of the late Bill France Jr. who succeeded their father as NASCAR chairman and CEO.
Both NASCAR and ISC are based in Daytona Beach where their respective corporate headquarters are located in the eight-story International Motorsports Center at the Daytona entertainment / retail / dining complex across the street from the speedway.
The two companies employ several hundred workers in Daytona Beach. ISC is the owner and developer of One Daytona.
ISC was formed in 1953, five years after the formation of NASCAR.
Originally known as Bill France Racing Inc., the company signed the initial contract to secure land for the Daytona International Speedway, which opened in 1959.
ISC became a public company through an initial public offering of common stock shares on Nov. 15, 1996.
Jim France, 73, who took the role of interim chairman and CEO in August, Brian France who took a leave of absence following a DUI arrest.
Friday's news release did not include the word "interim" in referring to Jim France's chairman and CEO titles.
Multiple national media reports in the early May, so speculated that the France family could be the sale of a major stake in NASCAR.
Lesa France Kennedy two days later at the Community Foundation of Volusia & Flagler's 26th annual Herbert M. Davidson Award Dinner at Daytona Beach, gave a speech in which she reaffirmed her and her family's commitment to her hometown.
Daytona Beach and Volusia County, "she said in a written statement to The News-Journal, where she received the award for "Outstanding Community Service."
ISC in October reported big year-over-year jumps in the tax cuts and jobs act, which lowered the company's corporate tax rate.
In a conference call with stock analysts on Oct. 4, ISC President John Saunders acknowledged that attendance at NASCAR events in the quarter were down 14 percent on average.
NASCAR stars including Dale Earnhardt, Jr., Saunders spokesman of NASCAR and all of the Necessity for a High-Intensity Alignment racetracks, not just ISC racetracks, and redirecting all of NASCAR's assets and track assets "to better respond to the" cultural shift for our sport. "
ISC has therefore been working to "increase the utilization of our facilities on a year-round basis" by hosting non-motorsports events such as concerts and festivals. The development of One Daytona on ISC-owned land across the street from the Speedway is another example of the company's efforts to create new sources of revenue, Saunders said. "We anticipate One Daytona to be a desirable destination for retail, dining and entertainment in the Daytona Beach area."
Greg Motto, ISC's chief financial officer, "told stock analysts," said, "Where have we experienced some headwinds and declines in admissions, we've worked prudently on the cost side of the business to manage margins."