September 21 , 2006 - Grand Canyon Railway accepts ‘letter of intent to purchase’ from Xanterra Parks & Resorts
WILLIAMS, ARIZ. -Grand Canyon Railway has accepted a “letter of intent” to purchase the Railway’s capital stock submitted by Xanterra Parks & Resorts. The Railway selected Xanterra after an extensive sales process designed to uncover the buyer best-suited for continuing the Railway’s remarkable legacy. The purchase includes Grand Canyon Railway’s historic train to the South Rim of the Grand Canyon, the Grand Canyon Railway Hotel and several real estate parcels in Williams, AZ.
Current Railway owners, Max and Thelma Biegert, started a search for strategic buyers after nearly 20 years of investing devotion and resources in the Railway. Working with Peacock, Hislop, Staley & Given, Grand Canyon Railway initially contacted more than 200 potential buyers, 25 percent of whom entered the sales process.
Xanterra quickly emerged as the buyer best-suited for continuing Max and Thelma’s vision for the Railway. Already a strategic business partner of Grand Canyon Railway, Xanterra stood apart because of its established relationship with the National Park Service, strong presence at Grand Canyon National Park and overarching commitment to preservation and protection of the environment.
“We’ve looked at a number of impressive companies and everyone involved in the search is thrilled about moving forward with Xanterra. We feel very confident that Xanterra has what it takes to continue to grow the business,” said W. David Chambers, president of Grand Canyon Railway. Chambers also noted that Xanterra’s intention to retain all of Grand Canyon Railway’s employees further strengthened Xanterra’s bid for the Railway.
Xanterra operates concessions in national and state parks and resorts throughout the country, including the South and North Rims of Grand Canyon National Park. The company’s involvement with the Grand Canyon dates back more than 100 years when the Santa Fe Railroad laid tracks from Williams to the South Rim where famed restaurateur Fred Harvey had proposed a hotel and restaurant. Xanterra purchased the Fred Harvey Company in 1968.
“Our purchase of the Grand Canyon Railway is a logical progression as both companies are already in the business of helping to create unforgettable experiences for visitors to the Grand Canyon,” said Andrew N. Todd, president and CEO of Greenwood Village, CO-based Xanterra Parks & Resorts. “We are excited about the acquisition. We believe the services both organizations provide will complement each other and make the combined offerings even more appealing to the traveling public.”
Originally built in 1901, Grand Canyon Railway provided passenger train service to the Grand Canyon until 1968, when America abandoned railroads for automobiles. The line lay silent for nearly 20 years until Max and Thelma became involved. Investing their own money and countless hours, they restored the historic route and reinstated train service in September 1989. Since their initial run, nearly 2.5 million people have traveled aboard the Railway (222,000 in 2005 alone).
About Grand Canyon Railway
Grand Canyon Railway operates daily train service between Williams, Arizona and the Grand Canyon. The Railway offers five distinct classes of service, as well as money-saving packages featuring the Grand Canyon Railway Hotel in Williams. Overnight stays at the Grand Canyon also can be included in the packages. Grand Canyon Railway is an authorized concessioner of the National Park Service and the Kaibab National Forest. For more information, visit www.thetrain.com or call 1-800-THE-TRAIN (1-800-843-8724).
About Xanterra Parks & Resorts
Xanterra operates concessions in the following locations: Yellowstone, the North Rim of the Grand Canyon, Bryce Canyon, Zion, Crater Lake, Death Valley and Petrified Forest National Parks, and Mount Rushmore National Memorial; and at the Silverado Resort in Napa, CA; Gideon Putnam Resort and Spa in Saratoga Springs, N.Y. and eight Ohio State Parks. Its affiliate Xanterra South Rim, L.L.C. operates concessions at the South Rim of the Grand Canyon. Long committed to the preservation and protection of the environment, Ecologix, Xanterra Parks & Resorts’ environmental program, includes a variety of proactive environmental stewardship programs in each location. For more information about Xanterra, links to individual properties and reservations numbers, visit: www.xanterra.com.
