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Carnival buys Fairfield
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January 24, 2000: 10:41 a.m. ET
Cruise line to acquire resort manager in stock swap valued at $775M
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NEW YORK (CNNfn) - Carnival Corp., the world's largest cruise vacation company, announced Monday it will acquire resort site manager Fairfield Communities in a stock deal worth $775 million.
Acquisition terms call for Fairfield stockholders to receive 0.3164 share of Carnival common stock for each Fairfield common share owned. Based on Carnival's (CCL) closing price during the past 10 trading days, the exchange ratio averages a per share price of $15.61 for each Fairfield (FFD) share, a 54 percent premium over the average closing price of Fairfield's stock during the same period, amounting to $725 million.
Including assumption of $50 million of Fairfield debt, total value of the transaction is $775 million.
Under the proposed transaction, Fairfield will become a wholly owned subsidiary of Carnival.
Orlando, Fla.-based Fairfield markets and manages 28 resorts in 11 states and the Bahamas and has six new properties under development.
Carnival, of Miami, operates Carnival Cruise Lines, which includes Holland America, Windstar, Cunard and Costa Cruises.
In trading Monday, Carnival fell 1-1/8 to 45-1/2, and Fairfield declined 1-1/4 to 11-3/4. 
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Carnival
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