A Colorado company operating concessions in the Grand Canyon National Park and in other states has agreed to buy the historic railway between the canyon and the town of Williams on Interstate 40.
Xanterra Parks and Resorts of Greenwood, Colo., Thursday signed a letter of intent to buy the 65-mile Grand Canyon Railway from owners Max and Thelma Biegert of Paradise Valley.
The purchase price was not disclosed.
When the Biegerts bought the railway in 1988 for about $15 million, it had been closed for about 20 years. The railroad dates to the late 1800s, when it was started to haul copper ore from a mine north of Williams. It later was extended to the Grand Canyon when Santa Fe Railroad and the Fred Harvey Co. opened El Tovar Lodge in 1905.
“We’re hoping by October to have signed a formal sales agreement that will be much more extensive than the letter of intent,” said Grand Canyon Railway President W. David Chambers.
At that time, the sales agreement goes to the National Park Service for review.
Xanterra President and Chief Executive Andrew N. Todd, in a prepared statement, said, “Our purchase of the Grand Canyon Railway is a logical progression as both companies are already in the business of helping to create unforgettable experiences for visitors to the Grand Canyon.”
The railway, its hotel, restaurant, gift shops and other facilities have nearly 500 employees. The railway’s annual ridership is more than 225,000.
Because of the potential for expansion of the railway’s business in Williams, Chambers said there is the likelihood for more employees, and there is no hint of any layoffs as a result of the pending sale. “Xanterra’s plans and our plans include continuing growth in the business, and I think that’s going to create more jobs, not eliminate jobs,” Chambers said.
Chambers called Xanterra “the largest national park concession operation in the United States.”
Xanterra has park concessions in several states besides Arizona, including Ohio, South Dakota, New York, Utah, Wyoming, Oregon and California.
When the Biegerts decided in March to sell their railway, about 200 potential buyers were contacted by their Phoenix investment bankers, Peacock, Hislop, Staley and Given.
That list was culled to Xanterra and two others, which the Biegerts and Chambers declined to name.
For more: Grand Canyon Railway 1-800-843-8724, www.thetrain.com, www.xanterra.com.
