Intrawest Corporation completes sale of Mammoth Mountain Ski Area
December 20 2005 - 5:41PM
PR Newswire (US)
ALL DOLLAR AMOUNTS ARE IN U.S. CURRENCY VANCOUVER, Dec. 20
/PRNewswire-FirstCall/ -- Intrawest Corporation announced today
that an entity controlled by Starwood Capital Group Global, L.L.C.
(Starwood Capital) has completed the previously announced purchase
of a majority interest in Mammoth Mountain Ski Area (Mammoth
Mountain), based on an enterprise value of $365 million. The
transaction has resulted in a pre-tax profit to Intrawest of
approximately $101 million. Pre-tax net proceeds to Intrawest after
debt assumed, working capital adjustments, transaction costs and
reinvestment in Mammoth Mountain amount to approximately $171
million. Initial use of the proceeds will be to pay down debt while
Intrawest evaluates its options for the best use of the proceeds.
Intrawest has retained a 15 per cent interest in Mammoth Mountain
and will continue to provide management expertise and other
corporate resources as required. The operations of the resort will
remain unchanged with Rusty Gregory continuing as chairman and
chief executive officer and maintaining approximately a 12.5 per
cent interest. Also previously announced, Intrawest and Starwood
have entered into a preliminary agreement for a joint venture on
the development of the majority of Intrawest's separately owned
real estate in the Town of Mammoth Lakes. With the closing of the
MMSA transaction and with Starwood completing the greater part of
its due diligence, Intrawest and Starwood will now turn to
finalizing the terms and conditions on the joint venture agreement
which is expected to be completed by the end of January 2006.
Mammoth Mountain Ski Area is the leading four-season mountain
resort company in California, owning Mammoth Mountain, June
Mountain, Tamarack Lodge, Mammoth Mountain Inn and Resort, Mammoth
Snowmobile Adventures and Mammoth Mountain Bike Park. The company
also operates Sierra Star Golf Club in Mammoth Lakes, California.
Mammoth Hospitality Management is a 50/50 joint venture between
Mammoth Mountain and Intrawest that currently manages over 380
units in the Village at Mammoth and will manage future units
developed by Intrawest at Mammoth. Intrawest Corporation (IDR:NYSE;
ITW:TSX) is a world leader in destination resorts and adventure
travel. The company has interests in 10 resorts at North America's
most popular mountain destinations, including Whistler Blackcomb, a
host venue for the 2010 Winter Olympic and Paralympic Games.
Intrawest owns Canadian Mountain Holidays, the largest heli-skiing
operation in the world, and an interest in Abercrombie & Kent,
the world leader in luxury adventure travel. The Intrawest network
also includes Sandestin Golf and Beach Resort in Florida and Club
Intrawest - a private resort club with nine locations throughout
North America. Intrawest develops real estate at its resorts and at
other locations across North America and in Europe. Intrawest is
headquartered in Vancouver, British Columbia. For more information,
visit http://www.intrawest.com/. Starwood Capital Group Global,
L.L.C., which is headquartered in Greenwich, Connecticut with
offices (or affiliate offices) in San Francisco, Washington, D.C.,
Atlanta, London, Luxembourg and Tokyo, has been an innovative
leader in real estate investments since its inception in 1991. Its
investors include some of the largest state and corporate pension
funds, endowments and high-net worth families from around the
world. Currently, Starwood Capital manages a real estate portfolio
valued at over $10 billion. In the past fifteen years, Starwood
Capital has closed or advised on real estate transactions totaling
in excess of $30 billion and has acquired equity interests in
hotels, golf and leisure-related properties, residential land,
multifamily and condominium units, senior housing, office, retail
and industrial space. Starwood Capital and its affiliates have
successfully executed an investment strategy that includes building
business enterprises around core real estate portfolios, including;
the recapitalization, reorganization and expansion in 1995 of a
real estate investment trust to become the company that is today
known as Starwood Hotels; the acquisition in 2003, in partnership
with affiliates of Goldman Sachs & Co., of National Golf
Properties/American Golf Corporation, the largest owner/operators
of golf courses and related facilities in the U.S.; and
contributing assets to create the company which is today known as
iStar Financial (NYSE:SFI), one of the leading publicly traded
finance companies specializing in commercial real estate mortgage,
mezzanine and net lease financing with a current market
capitalization in excess of $4.5 billion. For more information
regarding Starwood Capital, see http://www.starwoodcapital.com/.
Statements contained in this release that are not historical facts
are forward-looking statements that involve risks and
uncertainties. Intrawest's actual results could differ materially
from those expressed or implied by such forward-looking statements.
Factors that could cause or contribute to such differences include,
but are not limited to, Intrawest's ability to implement its
business strategies, seasonality, weather conditions, competition,
general economic conditions, currency fluctuations and other risks
detailed in the company's filings with the Canadian securities
regulatory authorities and the U.S. Securities and Exchange
Commission. For additional information, please contact Mr. John
Currie, chief financial officer, at (604) 669-9777 or Mr. Tim
McNulty, director, investor relations at (604) 623-6620 or at . If
you would like to receive future news releases by email, please
contact: DATASOURCE: Intrawest Corporation CONTACT: Mr. John
Currie, chief financial officer, at (604) 669-9777 or Mr. Tim
McNulty, director, investor relations at (604) 623-6620 or at ; If
you would like to receive future news releases by email, please
contact:
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