NEW YORK, August 21, 2006 – ICV Capital Partners, LLC (“ICV”), a New York-based private equity investment firm, announced today that its affiliate Entertainment Cruises Inc. has acquired Spirit Cruises, LLC and its related assets.  The transaction creates the largest operator of dining and entertainment cruises in the United States.  Entertainment Cruises will have annual revenues of approximately $85 million, EBITDA of over $15 million and will serve over 1.5 million passengers each year.  Terms of the transaction were not disclosed.

Spirit Cruises, based in Norfolk, Virginia, is the largest operator of river and harbor dining and entertainment cruises in the United States with 12 vessels operating in New York, Chicago, Boston, Philadelphia, Washington D.C., and Norfolk.  Spirit began operations in 1978 in Norfolk, Virginia and has grown significantly over the last 28 years.  In 2005, approximately 1 million people cruised on Spirit vessels.  Spirit’s regular cruises provide a buffet dinner, musical acts and dancing.  Spirit’s Bateaux brand in New York is a European style fine-dining event with a jazz theme.

“The essence of a Spirit cruise is a memorable experience,” said Lorna Donatone, President of Spirit Cruises.  “We have a particularly keen understanding of what people are seeking.  Groups might be looking for a lively opportunity to unwind.  Businesses may be interested in a new venue for their corporate events.”

Entertainment Cruises, headquartered in Chicago, IL, operates 8 dining and entertainment cruise vessels under the brands Odyssey, Mystic Blue and Seadog in Chicago, Boston, and Washington, DC.  Chief Executive Officer, Michael Higgins, founded the company in 1989.

Michael Higgins said, "I'm very excited about our new partnership with the Spirit organization.  We believe that this is good for our industry and will help grow the overall dining and entertainment market.”  He continued, "Lorna is an accomplished leader and having her join the Entertainment Cruises team will make our company better."

Lorna added, “The entire Spirit team is energized by our new affiliation with Entertainment Cruises.  Rarely does the opportunity present itself to create a company with such complementary talent and products.  I am personally delighted to be on this team and look forward to creating an exciting future for our employees, our customers and our shareholders.”

The transaction was financed with a $61 million senior debt facility from a syndicate led by Madison Capital Funding, LLC.  Spirit and Entertainment Cruises management and an investor group led by ICV provided the cash equity.

Lloyd Metz, a Principal at ICV, said, “This transaction is a great example of our strategy of investing in growing companies with leading market positions, strong brand equity and experienced management”

 Entertainment Cruises will have multiple brands and vessels in the major metropolitan markets of Chicago, New York, Boston and Washington DC.  “This transaction creates a clear market leader in a fragmented industry with scale and deep management strength.  The strong brand awareness and customer service culture at Spirit and all of the Entertainment Cruises brands will help drive the company’s future growth,” Metz said.

J.H. Chapman Group’s David Epstein and Robert Hill advised Entertainment Cruises and ICV.  The J.H. Chapman Group is a leading investment bank specializing in the food and restaurant industries with offices in Chicago and Paris.  Markus Bolsinger, Susan Zachman and Jason Quintana of Kirkland & Ellis LLP served as legal advisors to ICV.

ICV formed Entertainment Cruises in February 2006 to acquire Premier Yachts and is the first investment for ICV’s second fund, ICV Partners II, LP.

 

About Spirit Cruises, Inc:

Spirit Cruises, LLC is the largest harbor cruise company in the United States and operates a fleet of 12 ships cruising in seven of America's most popular port cities, including Boston, Chicago, New York and Weehawken, NJ (New York Harbor), Norfolk, VA, Philadelphia, and Washington, D.C.  Spirit offers lunch and dinner cruises that include energetic live song and dance entertainment, buffet dining, dancing to a DJ and sightseeing.  In addition to its Spirit vessels, it operates Bateaux New York, a luxury glass dining yacht; and Elite Yacht Charters, which are private charter vessels.  To learn more, go to the Spirit Cruises website at www.spiritcruises.com.

 

About Entertainment Cruises, Inc:

Entertainment Cruises, Inc operates dining and entertainment cruises in Chicago, Boston and Washington, D.C.  Their Odyssey brand provides elegant, fine dining cruises with live entertainment and dancing (www.odysseycruises.com).  The Mystic Blue brand offers a more casual atmosphere with buffet meals and DJ entertainment (www.MysticBlueCruises.com).  Seadog brand offers excursion cruises in turbo-charged speedboats that provide unparalled views of the Chicago skyline (www.Seadogcruises.com).  All three formats can be found at Chicago’s world famous Navy Pier while Boston and Washington, DC customers enjoy the Odyssey offering from Rowe’s Wharf and Gangplank Marina, respectively.

 

About ICV Capital Partners, LLC:

ICV Capital Partners is a private investment firm with over $440 million in committed capital from well known institutional investors.  ICV is investing from its $313 million second fund, ICV II.  ICV pursues a value-oriented investment strategy to invest in strong companies with market leading positions in partnership with management.  ICV is managed by four senior investment professionals who have extensive experience in sponsoring management teams and building businesses.  In addition, ICV has two co-sponsors, the Initiative for a Competitive Inner City (founded by Harvard Business School Professor Michael E. Porter) and American Securities Capital Partners, L.P. (a $2 billion New York-based private equity firm).  Additional information is available at www.icvcapital.com.