Just a little over two weeks after Delta Queen Steamboat Company announced that American Queen would be returning to the fleet in 2007 allowing to to operate a full three ship schedule in 2007, today even bigger news was announced.
Ambassadors International and the owners of Delta Queen Steamboat Company have announced that they have reached an agreement for Ambassadors to aquire the Delta Queen Steamboat Company. Ambassadors International plans to combine the operations of Delta Queen and American West Steamboat Company under the Ambassadors Cruise Group subsidiary.
Under the agreement Ambassadors International will acquire all three Delta Queen ships plus cash and other assets. The transaction still must be approved by the government but the deal is expected to close by the end of April. You can find Delta Queen President Bruce Nierenberg’s letter to the public regarding the transaction after the jump.
04/07/06
Dear Friends of the Delta Queen,
As you all know, the Delta Queen Steamboat Company has been focusing on plans for the future. On behalf of all of us, thank you for your continued support. It truly means the world to us and our hundreds of crew members.
Over the last several months, we have been working diligently to create a strategic plan for the Delta Queen Steamboat Company and its operations going forward post-Hurricane Katrina. Over the past several years, Delaware North Companies has focused on stabilizing and growing the business by adding new itineraries and marketing programs, as well as providing economies of scale with its other world-class hospitality holdings and operations.
It is with the focus on our incredibly loyal and dedicated customer and associate base, that Delaware North Companies is pleased to announce that it has reached a definitive agreement to sell the Delta Queen Steamboat Company to Ambassadors International, Inc. (Nasdaq: AMIE), a world-class leader in the travel and tourism industry.
Ambassadors International clearly has the reputation and the dedication to the cruise industry through its outstanding operations of American West Cruises. Our decision was driven by the need to focus on growth opportunities in our core business and because of other investment considerations. Delaware North Companies decided it was in its best interest to find a company that could continue the tradition of excellence that has always been part of the Delta Queen. We have found that in Ambassadors International.
In a press release issued today, Joe Ueberroth, President and CEO of Ambassadors International, Inc., said, “The combination of the Delta Queen Steamboat Company with American West Steamboat Company takes two significant regional businesses and creates a national, American cruise company. The operations will be combined under our Ambassadors Cruise Group subsidiary and be led by David Giersdorf. Our team is excited to offer our customers a selection of wonderful American itineraries across a fleet of luxurious sternwheelers with dedicated American crews. This acquisition will increase our number of vessels to five and the number of berths from 365 to approximately 1,400 berths, making us the largest operator in our category.”
The transaction is subject to certain approvals but we expect to close by the end of April, 2006. We are confident that this transaction will be seamless to our customers and our associates.
We are fortunate to have passengers and travel agents who have been so loyal to this company over the years. For that, I am truly grateful. It is our hope that the strength of the Delta Queen Steamboat Company and the magic of its American journeys will fill the boats to capacity in 2006 and beyond.
Sincerely Bruce Nierenberg President, Delta Queen Steamboat Company
Filed under: Delta Queen Steamboat Company
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