Del Webb Corp. has signed a definitive agreement to sell its recreational properties, including four Utah marinas on Lake Powell, for $77 million in cash to ARA Services Inc.
The sale, subject to certain undisclosed adjustments, involves Webb's recreational facilities at Wahweap Lodge and Marina on Lake Powell in Arizona; Bullfrog Marina, Hite Marina, Dangling Rope Marina and Hall's Crossing, all on Lake Powell in Utah; and the Wilderness River Adventures raft tours on the Colorado River.The agreement, which is expected to close by the end of the year, is contingent on the approval of the National Park Service, which grants the concession contracts to firms operating facilities in national parks.
Philip J. Dion, chairman and chief executive officer of Webb, said the price will result in a significant gain for Webb and that he was pleased that the group is being purchased by ARA. Dion described ARA as "a firm with a great deal of expertise in operating facilities of this type and a reputation for quality throughout the industry."
ARA has been in the leisure services market since 1966, and currently serves 11 lodging and resort areas, including Mount McKinley, Mesa Verde and Shenandoah National Parks.
"Management and the board have spent many hours since March 23 of this year to bring about the restructuring which was announced that day," Dion said.
He explained the sale as part of a program to leave recreation operations and focus on the company's adult communities and commercial real estate projects in Arizona, Nevada and Colorado.
"In addition, we are studying other possible real estate opportunities at various locations in the western part of the country."
ARA, headquartered in Philadelphia, is an international diversified services company with annual revenues of approximately $4 billion. It has 120,000 employees in 50 states and five foreign countries. ARA, in addition to food, beverage and lodging, provides health and education, magazine and book distribution and uniform rental and textile services.
Del Webb Corp. is a diversified company engaged in the management and development of adult communities, real estate and leisure operations. Webb has previously announced its intention to sell its leisure operations and concentrate on real estate activities.