PHOENIX--(BUSINESS WIRE)--Viad Corp (NYSE: VVI) announced today that it will expand its high-margin virtual flight ride theater concept into Iceland’s capital city of Reykjavik. Modeled after Pursuit’s highly successful FlyOver Canada attraction, FlyOver Iceland will provide guests an exhilarating virtual flight experience over some of Iceland’s most spectacular scenery and natural wonders. The new attraction is expected to open in 2019.
Steve Moster, Viad's president and chief executive officer, said "Our acquisition of FlyOver Canada in December 2016 has proven to be a great success with strong margins and financial returns. We are very excited to expand that concept into a new iconic market. Reykjavik, Iceland is a perfect location for a FlyOver attraction as the region is enjoying robust tourism growth with visitation expected to reach 2.7 million by 2019.”
In connection with this planned expansion, Viad acquired a 54.5 percent majority stake in an Icelandic entity, Esja Attractions ehf. (“Esja”), which has already secured an ideal location in Reykjavik to construct FlyOver Iceland. Viad’s majority investment completes Esja’s equity fundraising for the attraction.
David Barry, president of Pursuit, said, “With this acquisition, we achieve another strategic milestone for Pursuit by growing the FlyOver concept into a new iconic destination. We are excited to partner with Esja’s team of seasoned professionals who bring deep experience in the Icelandic market, which is quickly rising in popularity as a global tourism destination. Through our collective expertise, we are well-positioned to drive strong growth and profitability from this investment while enhancing Pursuit’s high-margin attractions portfolio.”
This investment is expected to generate strong returns for Viad, with a projected IRR in excess of the company’s stated 15% hurdle rate.
About Viad
Viad (NYSE: VVI) generates revenue and shareholder value through its two business units: GES and Pursuit. GES is a global, full-service live events company offering a comprehensive range of services to the world's leading brands and event organizers. Pursuit is a collection of iconic travel experiences in Alaska, Montana and Western Canada that showcase the best of Banff, Jasper, Waterton Lakes, Glacier, Denali and Kenai Fjords national parks. Viad is an S&P SmallCap 600 company. For more information about Viad, visit the company's Web site at www.viad.com. For more information about Pursuit’s collection of experiences, visit www.pursuitcollection.com.
Forward-Looking Statements
As provided by the safe harbor provision under the Private Securities Litigation Reform Act of 1995, Viad cautions readers that, in addition to historical information contained herein, this press release includes certain information, assumptions and discussions that may constitute forward-looking statements. These forward-looking statements are not historical facts, but reflect current estimates, projections, expectations, or trends concerning future growth, operating cash flows, availability of short-term borrowings, consumer demand, new or renewal business, investment policies, productivity improvements, ongoing cost reduction efforts, efficiency, competitiveness, legal expenses, tax rates and other tax matters, foreign exchange rates, and the realization of restructuring cost savings. Actual results could differ materially from those discussed in the forward-looking statements. Viad’s businesses can be affected by a host of risks and uncertainties. Among other things, natural disasters, gains and losses of customers, consumer demand patterns, labor relations, purchasing decisions related to customer demand for exhibition and event services, existing and new competition, industry alliances, consolidation and growth patterns within the industries in which Viad competes, acquisitions, capital allocations, adverse developments in liabilities associated with discontinued operations and any deterioration in the economy, may individually or in combination impact future results. In addition to factors mentioned elsewhere, economic, competitive, governmental, technological, capital marketplace and other factors, including terrorist activities or war, a pandemic health crisis and international conditions, could affect the forward-looking statements in this press release. Additional information concerning business and other risk factors that could cause actual results to materially differ from those in the forward-looking statements can be found in Viad’s annual and quarterly reports filed with the Securities and Exchange Commission.
Information about Viad Corp obtained from sources other than the company may be out-of-date or incorrect. Please rely only on company press releases, SEC filings and other information provided by the company, keeping in mind that forward-looking statements speak only as of the date made. Viad undertakes no obligation to update any forward-looking statements, including prior forward-looking statements, to reflect events or circumstances arising after the date as of which the forward-looking statements were made.
