American Skiing Company entered into a definitive agreement to sell its Sunday River and Sugarloaf/USA resorts to Boyne USA, Inc. for $77.0 million in cash. Boyne will also assume $2.0 million in debt and other liabilities. The announced sale follows the review of strategic options for both resorts announced in March.
“The longstanding relationship between ASC and the communities of Sunday River and Sugarloaf/USA extends to the very origins of our company,” said ASC President and CEO B.J. Fair. “With so much of our company's roots and history here, it will be hard to part ways with these resorts. However, I am confident both resorts have an exceptionally bright future ahead of them. Boyne is an established operator and should bring a wealth of vision and resources to guide Sunday River and Sugarloaf/USA into their next stages of growth,” added Fair.
Headquartered in Michigan, Boyne USA, Inc. is a privately held company that has interests in seven North American resort properties, including Big Sky Resort in Montana; Boyne Mountain, Boyne Highlands and Bay Harbor in Michigan; Brighton in Utah; Crystal Mountain in Washington and Cypress Mountain in British Columbia, Canada.
The transaction is subject to customary closing conditions, including Hart-Scott-Rodino antitrust approval and stockholder approval of American Skiing Company. The transaction is expected to close on or before July 31, 2007.
The Company expects to use the net proceeds from the sale for working capital purposes or as otherwise determined by the board of directors of the Company. Mr. Fair also noted that while American Skiing Company will be working towards closing the sale of Sunday River and Sugarloaf/USA, the company remains focused on operating The Canyons and reaching a successful and favorable resolution of the litigation involving the Utah resort.
