American Skiing Co. to sell Sunday River, Sugarloaf

American Skiing Company officials announced on Wednesday that the company had entered into an agreement to sell its Sunday River and Sugarloaf/USA resorts, both located in Maine, to Boyne USA, Inc. for $77 million in cash. Boyne will also assume $2 million in debt and other liabilities. The announced sale follows the review of strategic options for both resorts announced in March.
AMERICAN SKIING COMPANY officials announced on Wednesday that the company had entered into an agreement to sell its Sunday River and Sugarloaf/USA resorts, both located in Maine, to Boyne USA, Inc. for $77 million in cash. Boyne will also assume $2 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," Fair added.
    Sunday River features 131 trails spread across eight interconnected mountain peaks, serviced by a network of 18 lifts, including four high-speed quads. A recently constructed Robert Trent Jones Jr. championship golf course, two full-service fractional ownership hotel and conference center properties, and numerous local attractions complement the four-season offerings of the resort.
    Located in Maine’s Carrabassett Valley, Sugarloaf/USA boasts New England’s longest continuous vertical drop (2,820 feet) and only lift-serviced above-treeline skiing.
    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 antitrust approval and stockholder approval of American Skiing Company. The transaction is expected to close on or before July 31, 2007.
    Fair said that while American Skiing Company will be working toward 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.