MOUNT SNOW, Vermont ??вЂќ Mount Snow Ltd. announced today that it has entered into a Purchase and Sale Agreement to sell its Haystack Ski Resort in Wilmington, Vermont to a group of local businesspersons. Operated separately from the main resort area of Mount Snow Resort, Haystack has traditionally operated only on weekends and peak guest traffic periods. Mount Snow Ltd., a wholly-owned subsidiary of American Skiing Company, will continue to own and operate Mount Snow Resort.
“By selling Haystack locally to the developer of the Green Springs and Kingswood communities we have entered into a strong partnership of reinvestment into the Mount Snow Valley,” said Stan Hansen, President and Managing Director of Mount Snow Ltd. “This transaction speaks to the economic strength of this Valley and I look forward to working with this very highly respected management team.”
The Purchase and Sale Agreement provides for a $5,000,000 purchase price, subject to certain customary adjustments. The agreement also includes a two year right of first refusal of the Buyer for certain developmental land owned by Mount Snow Ltd. (but not used in its ski resort operations) known as the Howe Farm.
Under the terms of the agreement, Mount Snow Ltd. will continue to draw water from sources at Haystack after the closing in amounts which approximate Mount Snow’s historical use from this source. The Purchase and Sale Agreement also provides for continued use of Haystack by the local community.
The closing on the sale of Haystack is subject to buyer completion of a ninety day due diligence period as well as satisfaction of customary contingencies. Proceeds to Mount Snow Ltd. and American Skiing Company from the sale of Haystack are expected to be used for additional liquidity, to fund capital expenditures and reduce senior debt, each as permitted under American Skiing Company’s senior credit facilities.
“The sale will complement our recent acquisition of the Haystack Golf Club,” stated Denis Glennon, spokesperson for the buyers. “The sale represents an important opportunity for the community in that it will ensure the long-term viability for Haystack to be operated as a ski resort,” continued Glennon. Glennon went on to say that plans “include extensive upgrades and improvements to the resort’s infrastructure in order to meet changing market demands.” Plans call for creation of an upscale resort supported through membership.
“The key to our success has been entering into long-term commitments with the local business community and delivering a quality product. Our development team looks forward to continuing in the same traditions as in the past by delivering to the Deerfield Valley a quality resort on par with our Green Springs and Kingswood communities,” added Glennon.