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SANTA MONICA, Calif. -- Great American Family Parks Inc., a company focused on buying and managing profitable regional theme parks and themed amusement attractions, announced Friday that it has completed the first part of a planned two-stage transaction to sell its Crossroads Convenience Center (CCC) business to Idaho Chevron Center Inc.
According to the company, the initial phase of the transaction closed on Tuesday, Oct. 31, 2006, and involved the sale of a portion of CCC's assets for a purchase price of $600,000 pursuant to an asset purchase agreement. The second phase, which is expected to close within the next 30 days, involves the sale of CCC's building and real estate.
The CCC assets consist of the fuel and retail business located adjacent to The Idaho Center, a regional entertainment complex in the Boise, Idaho Standard Metropolitan Area. The total purchase price of the assets consists of $300,000 paid in cash, as well as a secured conditional promissory note in the amount of $300,000. The promissory note has a term of five years and bears interest at the rate of 8 percent per annum.
The asset purchase agreement also includes an option, exercisable on or before Nov. 30, 2006, to purchase the real property owned by Crossroads pursuant to a separate real estate purchase agreement. A description of the transaction is set forth in the company's current report on Form 8-K filed with the Securities and Exchange Commission.
"We have worked tirelessly to build the Crossroads Convenience Center into a successful franchise. The value of the Crossroads Convenience Center business has benefited from a strong real estate market and a steady rise in fuel prices. This is the right time to sell Crossroads Convenience Center, as we believe the sale price reflects the intrinsic value of the enterprise," said Dr. Larry Eastland, chief executive officer of Great American Family Parks. "(The) management believes that based on an independent appraisal and comparable land and businesses in the area, the second stage of the sale, which will include the CCC building and real property, will generate a significantly greater sale price than the asset sale announced today. We look forward to announcing the particulars of that second transaction to our shareholders once it is completed."
The sale of Crossroads will enable Great American Family Parks to focus on its stated mission of buying, managing and operating a family of themed amusement attractions. The proceeds received from the sale of Crossroads will primarily be used for further implementation of its business plan, which includes a planned expansion and upgrade to its Wild Animal Safari theme park in Pine Mountain, Ga. and the adjacent land currently owned by the park, including the development of new venues and improvements to its current facilities, according to Eastland. The remaining proceeds will be used to strengthen Great American Family Parks' balance sheet and for working capital purposes.
"Great American Family Parks is also committed to pursuing additional accretive transactions focused on the themed amusement park segment that we believe will continue to enhance long term shareholder value," Eastland continued.