Sun Country Purchase Price, $34M, Revealed
The amount that Cambria Holdings paid to acquire Mendota Heights-based Sun Country Airlines was revealed in recently filed court documents, and it totaled $34 million, according to the Star Tribune.
That's $10 million more than the minimum price set by Doug Kelley, who acted as receiver for the estate of former businessman and convicted Ponzi schemer Tom Petters.
Sun Country was sold to Cambria's owners-the Davis family, Minnesotans who own also own Davisco Foods-about two weeks ago. News of the sale came after Sun Country emerged from bankruptcy and had actively sought a buyer.
Terms of the deal were not made public at that time, and an attorney representing Kelley declined to disclose the purchase price to Twin Cities Business.
But the Star Tribune reported that the $34 million purchase price was revealed in court documents filed Tuesday. And in a report to U.S. District Judge Ann Montgomery, Kelley reportedly said that the terms of the sale “significantly exceed[ed] initial valuation estimates” and helped preserve about 850 jobs at Sun Country. The deal with the Davises reportedly came after Kelley rejected at least one other bid of $15 million.
Sun Country emerged from bankruptcy in February. Prior to filing for bankruptcy, the company was controlled by Petters and his various entities. Petters is now serving a 50-year prison sentence.
Sun Country CEO Stan Gadek told Twin Cities Business earlier this month that the Davises are the “perfect owners-the best alignment I could hope to achieve,” adding that they will work to identify “synergies for cross-marketing” opportunities with the Cambria brand.
Learn more about the events leading up to the sale and Gadek's comments on the future of the company in Twin Cities Business' earlier report here.