Mount Snow and Attitash sold

[Newpylong]

As rumored, I recieved this today as an ASC passholder:


February 16, 2006

Dear Passholder:

As you may have read or heard recently, American Skiing Company has reached agreements to sell its Mount Snow and Attitash resorts. While we at American Skiing Company will be working to ensure a smooth transition to new ownership over the coming months, we want to reassure you, our valued guests, that our resorts will remain focused on providing the terrific experience that you have come to expect of our resorts.

All season passes, vouchers and advance purchase tickets at our resorts will be valid through the end of the winter season, regardless of these resort sales. For the remainder of the 2006-2007 ski season, multi-resort products such as the All For One Pass and the Ski America Pass will continue to be valid at all resorts where they previously have been honored.

We are confident that you will experience no interruption in service at our resorts. Should you have any questions on your pass products or any other guest service issue, please do not hesitate to contact one of our representatives at our resorts. They will be happy to assist you and answer any questions you may have. Best wishes for a safe and fun remainder of the winter season!



Sincerely,


Chip Carey
Senior Vice President – Sales and Marketing
American Skiing Company

 

[snowmonster]

Note to self: ski Attitash and Mt. Snow before the season is over.

 

[Goblin84]

who bought them? same company or two different ones? anyone have more info?

 

[billski]

Peak Resorts

who bought them? same company or two different ones? anyone have more info?

Peak Resorts

American Skiing Company Announces Sale of Mount Snow and Attitash Resorts For $73.5 Million

PARK CITY, UTAH – February 16, 2007 – American Skiing Company (OTCBB: AESK) announced today that it had entered into a definitive agreement to sell its Mount Snow and Attitash resorts for $73.5 million to Peak Resorts Inc., a resort operator with ski resorts in Missouri, Indiana, Pennsylvania, New Hampshire and Ohio. The announced sales follow the December announcement of the planned $265 million sale of Steamboat resort.
"We've worked very hard to ensure that the full potential and value of each of our resorts is realized. Under the existing circumstances and market conditions, this means contemplating the sale of certain of our resort assets, as we've planned with Steamboat and now Mount Snow and Attitash," said ASC President and CEO B.J. Fair. "The tremendous interest we have experienced in the resorts is a tribute to the hard work and professionalism of our management teams. After much deliberation and many discussions with our Board of Directors, we feel that the best course of action for our stakeholders will be to sell these resorts under the terms proposed in the definitive agreements. This was obviously a very difficult decision, given the progress we've made at our resorts and as a Company," added Fair.
Included in the sale of Mount Snow and Attitash are the commercial cores of the Grand Summit Hotels located at both resorts. The total cash purchase price of $73.5 million for both resorts is subject to working capital and seasonal earnings adjustments. In addition, the buyer will assume approximately $2 million in debt and other liabilities.
As a condition of the purchase and sale agreement, stockholder approval is required for the sales of the Mount Snow and Attitash resorts. The sole holder of the Company's Preferred Stock Series C-1, representing 65.8% of the voting shares entitled to vote on the matter, has voted in favor of the transaction, which constitutes majority stockholder approval. Such approval means the transaction may be approved without a meeting of the Company's stockholders. The Company anticipates distributing an information statement to stockholders regarding the majority stockholder approval as soon as practicable. The stockholder approval will not be effective until twenty days have elapsed following mailing of the information statement to stockholders. In addition to stockholder approval, the transaction is subject to customary closing conditions, including Hart-Scott-Rodino antitrust approval and consent of the U.S. Forest Service.
The sale is expected to close on or before April 30, 2007. The Company expects to use the net proceeds from the sale to reduce existing debt and, to the extent any proceeds remain available thereafter, for working capital purposes or as otherwise determined by the board of directors of the Company.
About Mount Snow and Attitash
Mount Snow was the fifth most visited resort in the eastern U.S. in 2006, and is noted for being the closest major Vermont resort to the New York City metropolitan area. Summer attractions include an 18-hole championship golf course and mountain biking. Attitash consists of 280 acres of skiable terrain and is located in the heart of New Hampshire's Mount Washington Valley. The resort also offers mountain biking, a water park, alpine slide and various other summer amenities.
About American Skiing Company
Headquartered in Park City, Utah, American Skiing Company is one of the largest operators of alpine ski, snowboard and golf resorts in the United States. Its resorts include Killington, Pico and Mount Snow in Vermont; Sunday River and Sugarloaf/USA in Maine; Attitash in New Hampshire; Steamboat in Colorado; and The Canyons in Utah. More information is available on the company's web site, www.peaks.com.
Certain statements contained in this press release constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the Securities Act), and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act). These forward-looking statements are not based on historical facts, but rather reflect our current expectations concerning future results and events. Similarly, statements that describe our objectives, plans or goals are or may be forward-looking statements. We have tried, wherever possible, to identify such statements by using words such as "anticipate", "assume", "believe", "expect", "intend", "plan", and words and terms of similar substance in connection with any discussion of operating or financial performance. Such forward-looking statements involve a number of risks and uncertainties. In addition to factors discussed above, other factors that could cause actual results, performances or achievements to differ materially from those projected include, but are not limited to, the following: the failure to satisfy any of the conditions to closing of the purchase agreements relating to Steamboat and Mount Snow/Attitash, or the buyer's refusal to close for such agreements; and other factors listed from time to time in our documents we have filed with the Securities and Exchange Commission. We caution the reader that this list is not exhaustive. We operate in a changing business environment and new risks arise from time to time. The forward-looking statements included in this press release are made only as of the date of this document and under Section 27A of the Securities Act and Section 21E of the Exchange Act, we do not have or undertake any obligation to publicly update any forward-looking statements to reflect subsequent events or circumstances.
Contact:
David Hirasawa
American Skiing Company
Investor and Media Communications
435-615-0396
SOURCE: http://peaks.shareholder.com/ReleaseDetail.cfm?ReleaseID=230206

 

[Vortex]

http://www.firsttracksonline.com/index.php?name=News&file=article&sid=1687


Marc has been on top of this all along. Only one who was willing to go forward with the info also. He deserves props.

 

[billski]

too much

http://www.firsttracksonline.com/index.php?name=News&file=article&sid=1687


Marc has been on top of this all along. Only one who was willing to go forward with the info also. He deserves props.

Sorry Bob. Not enough time to ski/get the goods AND read every thread/article here. Priorities I'll read Marc's stuff in the summer when I can't catch turns anymre.


Now, where are my ski socks???

 

[Vortex]

No issue, just giving Goblin another linc, Marc actually posted the linc in the FTO thread.

Aw Billski we had some posts on being prepared in the lift line thread am today I Don't have time to look for it:flag: :smash: :wink: :-x

find the sock and get out.

 

[thetrailboss]

Wow.

Some observations:

*This will be the first time in like 30 years that Killington and Mt. Snow are not under the same ownership.

*Similarly, this is the first time in 11-12 years that Sunday River and Attitash will be separate.

*This signals a shift in the industry from NE resorts owned by NE companies and interests to a outside and non-traditional groups. Peak Resorts opened their first NE resort in 2003/2004 with Crotched. I guess we can infer that they are doing well.

*Peak is successful because of its snowmaking. I would expect upgrades at both resorts, probably after ASC strips them of snowmaking equipment :roll:

*But these resorts represent a departure from Peak's traditional MO....which are local day resorts that are close to metro areas. Both Snow and Attitash do have day markets, but both are "resorts" in the purest sense...with overnight accomodations and year-round activities and business (Attitash especially).

*I am surprised that they spun Snow off, considering that it had a draw and a large market. The question is what will happen next....

*It will be interesting to see how this impacts Crotched.....ticket deals, etc.

 

[hammer]

*It will be interesting to see how this impacts Crotched.....ticket deals, etc.

I was curious about this so I checked Crotched's web site...apparently they have discounted tickets at other Peak Resorts areas if you have a season pass but that's about it.

It would be nice if Peak Resorts could offer a multi-area pass similar to the ASC or Threedom passes but I'm not sure that would happen.

 

[madskier6]

*Peak is successful because of its snowmaking. I would expect upgrades at both resorts, probably after ASC strips them of snowmaking equipment :roll:

I would be very surprised if Peaks would allow ASC to "strip them of snowmaking equipment" unless it's specifically permitted in the acquisition agreement. That infrastructure is part of the resort and the asset package they're buying. I don't know about Attitash but Mount Snow is known for their snowmaking so to allow ASC to take that equipment changes the nature of the deal.

 

[thetrailboss]

I would be very surprised if Peaks would allow ASC to "strip them of snowmaking equipment" unless it's specifically permitted in the acquisition agreement. That infrastructure is part of the resort and the asset package they're buying. I don't know about Attitash but Mount Snow is known for their snowmaking so to allow ASC to take that equipment changes the nature of the deal.

I guess I am referring to the HKD guns and other non-fixed items that are on the mountain. IIRC ASC took all the guns from Sugarbush when the turned it over. And Pico certainly has far fewer snowguns than they did in 2001. Maybe shifting around...maybe leased equipment....maybe giving it to creditors...I dunno.

 

[downhill04]

I don't know about Attitash but Mount Snow is known for their snowmaking so to allow ASC to take that equipment changes the nature of the deal.

I’ve always thought of Mount Snow for their lack of snow making. They have such a limited water supply they really can not be considered a snowmaking power house. I was speaking to a mountain ops guy earlier in the season and he told me “If we ran our system all out, we would run out of water in less than 2 weeks.” This is why they struggled to open terrain this season.

Thank goodness Mother Nature finally stepped in this week!!!

 

[Newpylong]

That's for sure. They def. have the capacity to pump out the snow, but then they have to wait forever for recharge, as we saw this year. Having access to Somerset resevoir is going to help!

 

[frozencorn]

Although this is the beginning of the end for the ASC pass, I am glad that Attitash found a buyer at the very least this early - which might be a good sign, who knows? - as it was ASC's overlooked stepchild in that it was the least money-maker of them all, thus they had less privelges. Going bankrupt in this business in this environment is very possible for many resorts, and without ASC, it will be interesting to see how they fare.

 

[Greg]

It's official:

http://news.alpinezone.com/15207/

 

[drjeff]

It's official:

http://news.alpinezone.com/15207/

That just made my day! Have to pop open an extra couple of cold one's tonight to celebrate!

 

[snowmonster]

Waiting on the season pass prices for Snow-Attitash-Crotched. I hope it's reasonable.

 

[jerryg]

That just made my day! Have to pop open an extra couple of cold one's tonight to celebrate!

I'm somewhat surprised that ASC didn't put out a press release about this. They can use any good news they can get, as Jeff can attest to, but maybe they just plan to fold and sell of the Canyons too. That would be too bad. I've heard that ASC has done some great things in Park City. I'm told I should be bitter as I grew up skiing SR and SL, but frankly, I think it would be bad business for the Park City economy to have them fold. Besides, how would Oak Hill pay themselves back?

Agreed, though, this is great for Atty and Mt. Snow. A new beginning. I believe that both areas saw some good times along with teh bad times under the previous ownership and that many of the arguement are one-sided. Prior to ASC, Attitash didn't have Bear Peak and Mt. Snow had oil-dripping conveyor belts, but Walt had some SWEET inventions.

Smile, nod, and move on!

 

[drjeff]

I'm somewhat surprised that ASC didn't put out a press release about this.

Now also posted on saminfo.com website, ASC out at HQ must be too busy today going to the bank and filling out deposit slips!

but Walt had some SWEET inventions.

I think my favorite Walt dream of all had to be the one where he wanted to have an atomic bomb detonated at the base of the mountain to create a giant crater to increase the vertical drop! It still though is a great bit of nostalgia when up at MS and you watch what is basically the history of Mt Snow video that RSN Channel 41 runs. Even though I've literally seen it 100 times, I still can't channel surf on by it when its on, or if I'm watching it on the TV's in the base lodge, I just have to sit and watch a few extra minutes before heading out to the hill (unless of course it's a powder day!)

 

[Newpylong]

Here is a link to an article about the sale... good stuff in there:

http://dvalnews.com/news.php?news/news1.html

2.5 Million in fan guns for next year