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PR: Intrawest Acquires Breeze Winter Sport Rentals and Max Snowboards
(9-8-98)
VANCOUVER, British Columbia, Sept. 8 -- Intrawest Corporation today
announced its purchase of ski and snowboard equipment rental companies
Breeze, Inc. and Max Snowboards, Inc., based in Colorado. Intrawest will
add 43 more stores to its already established network of 122 storefronts
and combined retail and rental revenues will exceed $70 million as a
result of these acquisitions.
Intrawest has developed a reputation within the industry and with its
customers of offering superior service, specialized products, innovative
promotional activity and unique store environments. In 1997 Can-Ski,
Intrawest's unique specialty outlet, won the prestigious Innovative
Retailer of the Year award, Canada's premier retailing accolade. In 1998
Intrawest was awarded the Innovative Retailer of the Year award again for
its Mountain Adventure Centre concept, a series of on-mountain rental
shops connected electronically to an enormous 6,000 sq. ft showpiece in
the heart of Whistler village. The Mountain Adventure Centre system
allows guests to rent everything from shape skis to snowshoes in a single
day, dropping off or exchanging equipment at their convenience.
A well established name in the western United States, Breeze specializes
in the rental of snow sports equipment and the sale of winter
accessories. Under the same management, Max rents regular and high
performance snowboards and sells snowboard accessories. The companies
have locations in Utah, Colorado, Oregon, California, Wyoming, Idaho and
Nevada. Breeze has developed relationships with 200 tour operators,
8,000 travel agents and six airlines and operates a complete sales and
reservation system, providing Intrawest with a strong position in the
independent and tour-based destination business.
"These acquisitions will be a perfect avenue to expand our successful
rental and retail business," said Hugh Smythe, president of Intrawest's
resort operations. "Rentals and accessories have very high margins and
lower risk than typical ski retailing like skis, boots and clothing,"
said Smythe. "These acquisitions give us significant penetration into
this high-margin business and further establish Intrawest as one of North
America's leaders in winter retail and rental."
"The growth potential going forward is substantial," said Sandy Black,
Intrawest's vice president of retail operations. "We have developed a
unique blend of sports specialty expertise with traditional mass merchant
disciplines. When these two things are brought together in a dynamic
resort market, the results are very powerful."
"The Breeze/Max stores are already well ahead of the pack in the
marketplace today. Intrawest can take its expertise, and that of the
Breeze/Max team, to further upgrade these outlets with the latest
thinking in the rental/accessories business," added Black.
With its increasing stature as a retail/rental operator, Intrawest has
forged significant relationships with the travel industry and solidified
its purchasing power with suppliers. The Breeze/Max acquisitions
substantially increase the scope of these initiatives.
The former owners, Lew and Tom Sapiro, will remain part of the management
team. "I wanted to realize the equity I had built in the business, but I
also wanted to stay and help it grow," said Lew Sapiro. "Intrawest has a
vision for this business which mirrors my own. It's one company I could
work for that makes me excited about going to work in the morning."
Sapiro also expressed his intention to continue to help the industry
grow. "It's important that we continue cooperating with all facets of the
ski and snowboard industry to encourage and promote winter sport
activities at all levels," he said.
Intrawest is the leading developer and operator of mountain resorts
across North America. The company owns Whistler/Blackcomb, rated North
America's No. 1 resort. It also owns Panorama in British Columbia,
Tremblant and Mont Ste. Marie in Quebec, Copper in Colorado, Stratton in
Vermont, Snowshoe in West Virginia, Mountain Creek in New Jersey and
Mammoth in California (58%). The company also has a high-end timeshare
business and is creating world-class, four-season resort villages at
Keystone, Colorado and Squaw Valley near Lake Tahoe, California.
Intrawest owns Sandestin Golf and Beach Resort in Florida and owns 14
golf courses. Intrawest also recently completed an international
alliance with Compagnie des Alpes, the largest ski company in the world
in terms of skier visits.
Intrawest Corporation's shares are listed on the New York Stock Exchange
(IDR) and the Toronto and Montreal exchanges (ITW). The Company is
headquartered in Vancouver, British Columbia.
Breeze Winter Sports rents snowboards, snowblades, shape skis, powder
skis, free ride skis, cross country skis, car racks, helmets, clothing
and snowshoes. Max Snowboards sells snowboard accessories, clothing and
equipment.
The statements which are not historical facts contained in this release
are forward-looking statements that involve risks and uncertainties.
Intrawest's actual results could differ materially from those expressed
or implied by such forward-looking statements. Factors that could cause
or contribute to such differences include, but are not limited to,
seasonality, weather conditions, competition, general economic
conditions, currency fluctuations and other risks detailed in the
company's filings with the U.S. Securities and Exchange Commission.
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