Intrawest Resorts (SNOW) to Sell IRCG Vacation Club Business in $85M Deal (DRII)

Intrawest Resorts (NYSE: SNOW) announced that it has entered into a definitive agreement to sell Intrawest Resort Club Group (“IRCG”), its vacation club business, to Diamond Resorts International, Inc. (NYSE: DRII) for $85 million, subject to certain closing adjustments. The transaction is expected to be completed by the end of the first quarter of calendar year 2016 and is subject to certain closing conditions.

“We are excited to enter into this agreement and believe this transaction creates meaningful value for our shareholders as it better positions Intrawest for greater long-term growth,” 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 resort 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 to execute a seamless transaction and look forward to a long-term relationship with Diamond that we believe will benefit club members and our resorts alike,” continued Mr. Marano. “We are confident that IRCG will thrive at Diamond, with its network of more than 350 worldwide vacation destinations and focus on delivering consistent quality and personalized service, and we believe members will benefit tremendously.”

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, including locations at the Company’s Mont Tremblant in Quebec and Blue Mountain in Ontario.

Deutsche Bank Securities Inc. acted as financial advisor, and Dechert LLP acted as legal counsel to Intrawest Resorts.

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