Diamond Resorts International, Inc., announced that it has entered into a definitive agreement to purchase Intrawest Resort Club Group (“IRCG”) from Intrawest Resorts Holdings, Inc. (NYSE: SNOW) for $85 million, subject to certain closing date adjustments. The transaction is expected to be completed by the first quarter of 2016.
IRCG develops, sells interests in, and manages a points-based timeshare vacation club called Club Intrawest. The transaction includes the management contracts with Club Intrawest, the current balance of notes receivable, approximately four acres of undeveloped land, and the current balance of points available for sale. Club Intrawest consists of nine resorts across North America and more than 22,000 members.
“We are acquiring a business with a very strong member base and a set of high quality resorts that will complement our portfolio, and we look forward to building a mutually beneficial relationship with Intrawest beyond this transaction,” said David Palmer, President and Chief Executive Officer, Diamond Resorts International. “The purchase of Intrawest Resort Club Group follows our recent acquisition of Gold Key Resorts, both providing us with significant value creation opportunities through synergies, sales innovation and cost savings. We are confident that acquisitions such as these will enhance our financial profile and create long-term shareholder value.”
“We are excited to enter into this agreement and believe this is a strategic move for both the vacation club business and Intrawest,” stated Tom Marano, Chief Executive Officer of Intrawest Resorts. “With the additional cash from this transaction, we are well positioned to continue driving organic growth at our mountain resorts and adventure businesses while also actively pursuing strategic acquisitions and evaluating opportunities to unlock the value of our real estate holdings over time. We are committed to working closely with Diamond Resorts to execute a seamless transaction and look forward to a long-term relationship with Diamond Resorts that we believe will benefit club owners and our resorts alike.”