March 9, 2000
New York, NY -- Ogden Corporation today announced that it has signed a definitive agreement with Alfa Alfa Holdings, SA, of Greece, to sell its theme and water parks-related division for approximately $148 million, consisting of cash and the assumption of approximately $80 million of associated debt. The sale is part of Ogden's strategy to sell its Entertainment and Aviation businesses in order to create a solid operating platform for its Energy business and serve the long-term interest of the Company's shareholders.
"We are very pleased to reach this agreement with Alfa Alfa, which is a prominent diversified company in Greece," said Scott G. Mackin, Chief Executive Officer and President of Ogden Corporation. "This is the first concrete step in the disposition of our non-core assets, which is a central component of our strategy to deliver value to Ogden's shareholders. We are fully engaged in the process of selling the other assets of Entertainment and Aviation, and we will make further announcements as definitive agreements are reached. Sales will require approval of our various lenders, and as we've stated in the past, the Company is continuing discussions with its banks and believes it will be successful in obtaining necessary waivers from applicable covenants to assist us through this restructuring process."
Commenting on the transaction, Mr. Apostolos Allamanis, President of Alfa Alfa, said, "This acquisition will mark Alfa Alfa's strategic entry into the expanding U.S. theme and water parks industry."
The transaction is expected to close within 45 days, and is subject to certain consents, customary regulatory approval and bank consents on the sales and related issues. Under the terms of the agreement, Alfa Alfa's acquisition of Jazzland, a theme park currently under construction in New Orleans, Louisiana, will close separately, upon that park's completion by Ogden. Jazzland is expected to open for commercial operation in late May 2000.
Goldman Sachs acted as financial adviser for Ogden in this transaction.