The Mount Snow base area in late November, 2014. Photo by Rudi Riet/Flickr
Ski area giant Vail Resorts announced plans Monday to acquire Peak Resorts — a move that would bring Vermont’s Mount Snow resort under its ownership.
The company will acquire 100% of the outstanding stock in Peak Resorts, adding 17 ski areas to its portfolio bringing its total to 34 resorts across the United States.
As part of the deal, estimated at $264 million, Vail Resorts will be assuming or refinancing Peak Resorts’ outstanding debt.
Stock was sold at $11 a share, subject to certain conditions, including regulatory review and Peak Resorts’ shareholder approval. Shares in Peak Resorts closed at just over $5 Friday, and nearly doubled in trading Monday morning.
Peak Resorts had been growing in recent years, with the acquisition of several mountains in New York and Pennsylvania, thanks in part to an infusion of cash from the Sackler family, which is also connected to the production of the pain-relief drug Oxycontin. The family is now facing a multitude of lawsuits for allegedly helping fuel the nation’s opioid epidemic.
“We are incredibly excited to have the opportunity to add such a powerful network of ski areas to our company,” Rob Katz, CEO of Vail Resorts, said in a statement. “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.”
Once the deal is finalized, Vail Resorts plans to invest $15 million over the next two years to “elevate the guest experience” at the resorts. The company also ensured that “upon closing, Vail Resorts plans to retain the vast majority of each resorts’ employees.”
“Vail Resorts has a proven track record of celebrating the unique identity of its resorts, while continually investing in the guest and employee experience,” said Timothy Body, CEO of Peak Resorts. “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.”
The deal will also transfer ownership of Hunter Mountain in New York, and control of Attitash Mountain Resort, Wildcat Mountain and Crotched Mountain in New Hampshire, as well as several other ski resorts across the midwest.
Read the story on VTDigger here: Vail Resorts acquires Mount Snow as part of $264 million deal.