Vail Resorts to Acquire Stakes of Peak Resorts | Local News

BARTLETT — Monday became a big day for the local ski industry following news that Broomfield, Colo.-based Vail Resorts Inc. is buying Peak Resorts Inc. and its 17 ski resorts for $264 million.

Peak’s holdings include Attitash Mountain in Bartlett and Wildcat Mountain in Pinkham Notch, as well as Crotched Mountain in Francestown and Mount Snow in Vermont.

Vail Resorts owns the Mount Sunapee Resort in western New Hampshire, as well as the Stowe and Okemo resorts in Vermont.

Vail is a public company listed on the New York Stock Exchange (MTN).

According to a press release on Monday, it will acquire 100% of Peak’s outstanding shares for $11 per share, subject to certain conditions, including regulatory review.

“We are incredibly thrilled to have the opportunity to add such a powerful network of ski areas to our company,” said Rob Katz, president and CEO of Vail, in Monday’s press release.

“The Peak Resorts ski areas in the Northeast are a perfect complement to our existing resorts and together they will provide a very attractive offering to our customers in New York and Boston,” he said.

“Through this acquisition, we are also able to establish a much stronger connection with customers in critical cities in the Mid-Atlantic and Midwest.”

The pending transaction was praised by Timothy Boyd, President and CEO of Peak Resorts of Wildwood, Mo.

“Vail Resorts has a proven track record of celebrating its resorts’ unique identity, while continually investing in the guest and employee experience. For this reason, we are confident that our resorts and employees will continue to thrive within the Vail Resorts network,” Boyd said in a statement released Monday.

“We are very proud of our record over the past two decades in building the breadth, quality and accessibility of our resorts. We are delighted that our clients now have access to some of the most renowned resorts in the world,” he said.

Peak Resorts acquired Attitash in 2007 and Wildcat in 2010. Regions offered reciprocal tickets.

Vail Resorts currently offers a 2019-2020 Epic Pass, Epic Local Pass, Military Epic Pass, and Epic Day Pass. After the transaction closes, Peak and Vail will combine their multi-zone passes, the press release said.

“For the 2019-2020 season, Vail Resorts will honor and continue to sell all Peak Resorts pass products, and Peak Resorts pass holders will have the option to upgrade to an Epic Pass or Epic Local Pass, after the transaction closes. “, the press release said.

Improvements to the Attitash and Wildcat snowmaking systems have been made under Peak ownership. Attitash’s troublesome triple lift, however, suffered several breakdowns over the busy Christmas week and then into the season. Company officials said that despite efforts to repair it, the lift would not operate for the remainder of the ski season, but repairs would be made.

It’s unclear how Vail’s acquisition will affect infrastructure improvements in local areas, but Monday’s release says the company will make improvements nationwide.

“After closing of the transaction, Vail Resorts expects to invest approximately $15 million over the next two years in one-time capital expenditures to enhance the guest experience at these resorts,” the statement said.

The transaction has been approved by the boards of directors of both companies, and Peak Resorts’ board of directors recommends that its shareholders approve the transaction.

The transaction is expected to close this fall. The parties expect operations at all of Peak’s ski resorts to continue in the normal course of business. Upon closing, Vail Resorts plans to retain the vast majority of each resort’s employees.

In addition to New England ski areas, Vail subsidiaries also operate Vail, Beaver Creek, Breckenridge, Keystone and Crested Butte in Colorado; Park City in Utah; Heavenly, Northstar and Kirkwood in the Lake Tahoe region of California and Nevada; Whistler Blackcomb in British Columbia; Stevens Pass in Washington State; Wilmot Mountain in Wisconsin; Afton Alps in Minnesota; and Mount Brighton in Michigan; and Perisher, Falls Creek and Hotham in Australia.

Vail Resorts owns and/or operates a collection of hotels under the RockResorts brand, as well as the Grand Teton Lodge Co. in Jackson Hole, Wyo.

The acquisition is expected to generate annual pretax income of approximately $60 million in Vail Resorts’ fiscal year ending July 31, 2021.

Vail Resorts’ ongoing annual capital expenditures are expected to increase by $10 million to support the addition of Peak Resorts ski areas.

Carol N. Valencia