Talisker To Buy "The Canyons"
The fate of The Canyons ski resort has been up in the air for awhile with lots of speculation on who would take over the resort. Looks like that has been resolved with the Talisker Group putting in an offer for $100 million to purchase the resort. There is a due diligence period and a presentation to the stock holders, before the deal is finalized. But, should represent a significant shot in the arm to real estate in The Canyons areas. Talisker is know for high levels of service and has some very significant high-end developments in the Park City area. Following is an article from today's Deseret News newspaper on the acquisition.
Talisker to buy The Canyons
$100 million deal expected to close by late September
By Greg Kratz
Deseret Morning News
Park City-based American Skiing Co. said Monday that it plans to sell The Canyons resort for $100 million in cash.
The sale of the company's ASC Utah Inc. subsidiary to Talisker Canyons Finance Co. LLC, an affiliate of Canada-based Talisker Corp., is expected to close by the end of September.
Talisker, a private real-estate development and investment company, has "significant assets" in Park City, according to a company news release. The company has been developing real estate in the community since 2000, and in 2003 acquired United Park City Mines.
Assuming the sale goes through, it would leave American Skiing without any major resort assets.
"This sale will complete a necessary step for American Skiing Co. to wind down its affairs," said B.J. Fair, ASC president and chief executive officer, in a prepared statement. "We at ASC and The Canyons have worked tirelessly to position the resort for success in the years to come.
"I am very proud of what we have accomplished and look forward to the energy and vision that I expect Talisker to bring to the resort and community."
Talisker officials were not available for comment Monday, and a news release from the company did not indicate its future plans for the resort.
The Canyons, located near Park City, offers 3,700 skiable acres serviced by 17 lifts spread across eight mountain peaks. The resort also includes a hotel and other lodging, dining and retail outlets.
American Skiing said in its release that "an 18-hole championship golf course and numerous resort amenities are expected additions to the resort in the coming years."
David Hirasawa, director of financial analysis and investor relations for American Skiing, said the Talisker bid for The Canyons was unsolicited and "kind of a one-off thing."
"When an offer like this comes in, I think you have to consider a number of factors," Hirasawa said. "We felt the price was very good. Talisker is also familiar with this area. ... I think they will be a good steward of this resort going forward."
While selling The Canyons is a "natural step" in the process of dissolving American Skiing, Hirasawa said, that process does not have a set time-frame and could take awhile.
American Skiing announced in June that it would sell the Sunday River and Sugarloaf USA ski areas in western Maine to Boyne USA Inc. of Michigan for $77 million in cash. The company said at the time that the transaction was expected to close on or before July 31.
In previous months, American Skiing had also said it was selling Steamboat in Colorado; Killington, Mount Snow and Pico in Vermont; and Attitash in New Hampshire.
The sale of The Canyons is not expected to result in any change in pending litigation between the resort and Wolf Mountain, a landlord at The Canyons, American Skiing said in its news release. The dispute is over terms of a lease covering a key section of the ski area.
The American Skiing/Talisker transaction is subject to several closing conditions, including antitrust approval and stockholder approval of American Skiing.