Vail Resorts, Inc. announced it has entered into a definitive merger agreement to acquire 100% of Peak Resorts, Inc. at a purchase price of $11.00 per share, subject to certain conditions, including regulatory review and the approval of Peak Resorts' shareholders.
This adds 17 U.S. ski areas to Vail's network of resorts, doubling the current 17 to 34. All of these resorts are located near major metropolitan areas, including New York, Boston, Washington, D.C., Baltimore, Philadelphia, Cleveland, Columbus, St. Louis, Kansas City, and Louisville.
The resorts are: Mount Snow in Vermont; Hunter Mountain in New York; Attitash, Wildcat, and Crotched Mountains in New Hampshire; Liberty Mountain Resort, Roundtop Mountain Resort, Whitetail Resort, Jack Frost, and Big Boulder in Pennsylvania; Alpine Valley Boston Mills, Brandywine, and Mad River Mountain in Ohio; Hidden Valley and Snow Creek in Missouri; and Paoli Peaks in Indiana.
A number of these resorts already have bike parks and Vail Resorts owns other bike park resorts, including Whistler B.C., Keystone, and Northstar.
| We are incredibly excited to have the opportunity to add such a powerful network of ski areas to our company. Peak Resorts’ ski areas in the Northeast are a perfect complement to our existing resorts and together will provide a very compelling offering to our guests in New York and Boston. With this acquisition, we are also able to make a much stronger connection to guests in critical cities in the Mid-Atlantic and Midwest and build on the success we have already seen with our strategy in Chicago, Minneapolis, and Detroit. The acquisition fully embodies our philosophy of Epic for Everyone, making skiing and riding more accessible to guests across the U.S. and around the world.
The ski areas within the Peak Resorts portfolio exemplify the spirit of our sport as well as our Company’s mission to provide an Experience of a Lifetime to guests. We’re thrilled to welcome the resorts and their employees into the Vail Resorts family and invest in their continued success.—Rob Katz, Chairman/CEO Vail Resorts |
| Vail Resorts has a proven track record of celebrating the unique identity of its resorts, 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.
We are very proud of our track record over the last two decades in building the breadth, quality and accessibility of our resorts. We are thrilled that our guests will now have access to some of the world’s most renowned resorts.—Timothy Boyd, President/CEO Peak Resorts |
When the transaction closes, the 2019-20 Epic Pass, Epic Local Pass and Military Epic Pass will include unlimited and unrestricted access to the 17 Peak Resorts ski areas. Guests with an Epic Day Pass will also be able to access the new ski areas as a part of the total number of days purchased. For the 2019-20 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, following closing of the transaction.
Additional Transaction Details:
The aggregate purchase price for all Peak Resorts common stock is estimated to be approximately $264 million (calculated on a treasury method basis), which Vail Resorts intends to finance through a combination of cash on hand, its existing revolver facility and an expansion of its existing credit facility. In addition, Vail Resorts will be assuming or refinancing Peak Resorts’ outstanding debt.
The acquisition is expected to generate incremental annual EBITDA of approximately $60 million in Vail Resorts’ fiscal year ending July 31, 2021, the first fiscal year with the full benefit of the synergies of the acquisition, with additional revenue upside in future years. Synergies are expected to come from additional revenue across the Vail Resorts network of resorts and cost reductions from the elimination of certain duplicative administrative functions and greater efficiencies brought by Vail Resorts’ size and scale. Vail Resorts’ annual ongoing capital expenditures are expected to increase by $10 million to support the addition of the Peak Resorts ski areas. After closing of the transaction, Vail Resorts plans to invest approximately $15 million over the next two years in one-time capital spending to elevate the guest experience at these resorts.
The transaction was approved by both companies’ Boards of Directors, and the Peak Resorts Board of Directors also recommends that Peak Resorts’ shareholders approve the transaction.
The transaction is expected to close this fall. The parties expect operations at all Peak Resorts ski areas to continue in the ordinary course of business. Upon closing, Vail Resorts plans to retain the vast majority of each resort’s employees.
Additional details can be found on
Vail Resorts and
Peak Resorts webpages.
These days, the occasional park day is ok when I'm feeling frisky, but I'd rather ride trails that aren't totally blown out or overrun with people. On top of that more and faster riding generally = more crashing. I'm at that age where I can't just ignore the injuries and keep riding anymore.
Bike parks are great for what they are, but I just don't have as much fun at them any more. Huge lift lines, everything overpriced.. just equates to more stress when all you're trying to do is have fun on your bike. Plus if I wanted to wait half the day in a line up to go up a mountain, I'd just visit any European ski resort.
Don't get me wrong, I learned to ride well because of the park. The amount of riding you get done in a day is easily 10x that what you would get just pedalling, but for the price it just doesn't balance out.
I am most certainly jaded because I spent most of the beginning of my riding life at the park, and it was cheap (because no hotels, seasons pass). I'm not saying just don't go, because it's fun as hell, but it's just not for me any more.
Angel Fire...not expensive, superb riding, never crowded.
@SlodownU You're also spot on. "Ancillary spends" are what the big passes are after. Lodging and F&B. #EpicBurger
Ok it's not Whistler in term of bike park but you have very nice single track top to bottom with 2600m vertical drop in total.
The inscription to the Megavalanche that includes a week long free pass for all the Alpe d'Huez lifts and all trails, the race itself,food after both the qualification and the race as and even free acess to a pool costs about 120€.
Those US and Whistler prices are crazy expensive.
Make no mistake, Vail coming to your town will change life as you know it. Your friends with small businesses that rent space in town will get pushed out; restaurants that serve good food for cheap will get pushed out; your bike park will be dumbed down or shut down; your parking will be $25 a day at the resort base. They don’t care about the towns they move into or the people they displace, it’s just the bottom line for them.
On a high note, the ski industry has seen some catastrophic failures in the past when companies have grown to big. I hope that’s the case again.
Vail bought Stowe VT and the lift prices are now basically $150 at the window!! I no longer go there and go to Jay Peak, is a shame they got Mount Snow VT. Good mountain with fair prices from lifts to rooms.
skiinghistory.org/history/ski-resorts-years-they-were-founded
Finally, some bloody investment in the resort, new lift, increased on mountain accommodation etc and, best of all, the EPIC pass!
Buy my season pass here, and then I can go to Colorado and board Vail, Beaver Creek, Keystone, Breck (which I have) etc all on the one trip and not pay a cent more for lift tickets! Awesome.
Airbnb some accommodation, get groceries at the local and there's breakfast and dinner taken care of for the trip. So I'm only up for one overpriced meal a day at the resort (which isn't anywhere near as bad a rip off as we have it here).
Such a good deal.
I'll just go mountain bike and "earn" my turns thank you. Ironically, Heli-biking in Whistler is becoming comparably cheap to lift access. Yes, different in many ways. But A-star Alpine time is special!
Best to do is some uphill lines only.
Ebikes will only bring more clients to trail locations, including those with the lift. They will pay for hotels, lodges, restaurants, shitty beer, awful burgers with cancer fries and ride easy blue trails. What is not to like about that? Meanwhile keep it real bros can send it on big jump lines or ride “natural” trails. I personally don’t care whether I follow a Joey on enike or regular bike or what I am chased by...
"We are the Borg. Your biological and technological distinctiveness will be added to our own. Resistance is futile."
@SlodownU - I've never heard that. I am sure you don't have publicly available data for that anecdote but I just hope it's not true.
All: I have to remain hopeful that this is good news as much as a duopoly is less than ideal for the consumer. I was just at Whistler last weekend for my first trip of the season and even after 17 seasons of riding there, I continue to be impressed at the extent and creativity of the trails in the park. It just gets better and better. The Creekside expansion seems promising as well. I stayed in an affordable condo there and was able to ride in/ride out without having to pay for parking nor drive on Sea to Sky.
Resorts want hikers too..on guided routes. And they're building off the bike kid friendly attractions.
Smaller ones will put in a kart track, malibu style. ( can be mega fun, depending on the karts tuning)
Family $$ seems to be the prize for resorts.
And it sure seems like thers more families with more money.
on that scale...it makes sustainable business sense
Really it's generally the same as west but generally things on the east are divided up much more locally so different local bodies end up leasing to different resorts.
If one is on private land it's doubtful it's on land that wasn't privately owned long before it was a resort or that it's on a hill or mountain of much significance to those in it's area.
The people who care are always in the 1-5% range and have a very hard time changing the 95-99%
#makeliftpassesaffordableagain
They did so little for so long that all the existing trails needed a lot of love and that blew all the budget. They have actually done significant work in the last couple of years to Girl Scout, Mosquito Coast, Milky Way, High Speed Dirt, Paid In Full, Cowboy Up plus totally rebuilding Money (which was a death trap) and building Holy Roller.
Building new trails probably requires National Forest approval and a 3 year planning process like Trestle went through for their expansion. They really need a new way down the last section of the mountain, something flowy that's fun when you are tired.
So much room for improvement, they really do have a good mountain but I think it's a catch 22. Not enough people go, so Vail don't see a return on the investment but it needs investment for improvement to raise the numbers.
Maybe climate change will force their hands, here's hoping!
Another non-mountain-bike-related loss for the Utah ski industry; Snowbasin (not owned by vail) has made some sort of deal with Vail, in which users who have an EPIC pass can go 8 times to Snowbasin, yet individuals who purchase a Snowbasin pass, do not reap any benefit from Vail. This is a great example of the horrifying nature of Vail, they are selfish and I f*ckING hate them. f*ck YOU VAIL!!!!!
One of the market segments at issue in that dispute (though not discussed by that link) was defined as "skiers who travel from far away to ski mountains in Colorado." My guess is that a similar market segment could be at issue here due to these mountains all being located close to major metro areas; Vail Resorts has a rather big chunk of mountains that attract the "weekend ski trip" crowd now.
www.statista.com/statistics/206534/number-of-ski-resorts-operating-in-the-us-since-1990
Parks
Gravity logic
Ebikes
Not necessarily representative of the biking community as a whole.
But I digress, as I love riding there so much. I'll just grab my ankles and take it like a man...
If I'm to go back up that way, I wouldn't bother with Attitash again.
"start of this season" is the key word, right? I mean start of any season - be it biking or skiing, is crowded as hell pretty much everywhere. How are the lines usually in September?
proxy.duckduckgo.com/iu/?u=http%3A%2F%2Fipocars.com%2Fimgs%2Fa%2Fd%2Fq%2Fs%2Fc%2Fpiaggio__ape_50_europe_box_new_vat_now_ready_to_pick_up_2010_3_lgw.jpg&f=1
But I do think/hope both will do well.
$33 bike park ticket?? what is required? rei membership? I had no idea!
I heard that but never saw that but not sure if those rumors were true or not?
Thredbo is the only place to go for NSW/ACT skiers.
Even Falls Creek and Hotham are under lease by Vail, which sucks ass
Sunday River had always been on the edge of failure when it comes to mountain biking because it's too damn far away. I can get to Thunder in an hour and a quarter and Highland in less than two and half hours. That's day trip distance. Thunder is easily accessed by a huge population of people from NY, CT, MA, RI, etc. A lot of places want to charge a high price and because of distance you can't go without a huge bill for food, lodging, etc. Day tripping distance is a recipe for success.