Vail Resorts announced Monday that it has entered into an agreement to acquire 100 percent of the outstanding stock of Peak Resorts which is traded on NASDAQ as SKIS. The purchase price of $11.00 per share – or $264 million - is subject to certain conditions, including a regulatory review and Peak Resorts’ shareholder approval.
Through the acquisition, Vail Resorts will add 17 U.S. ski areas to its network. The resorts include:
- Mount Snow in Vermont
- Hunter Mountain in New York
- Attitash Mountain Resort, Wildcat Mountain and Crotched Mountain 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
- Paoli Peaks in Indiana
The ski areas are located near major metropolitan areas, including New York, Boston, Washington, D.C., Baltimore, Philadelphia, Cleveland, Columbus, St. Louis, Kansas City and Louisville.
In a prepared statement, chairman and chief executive officer of Vail Resorts Rob Katz, said he’s excited about the additions. Peak Resorts’ ski areas in the Northeast he said are a perfect complement to the company’s existing resorts and together will provide a compelling offering to guests in New York and Boston. With this acquisition, he said they’re also able to make a much stronger connection to guests in critical cities in the Mid-Atlantic and Midwest and build on the success they have already seen in Chicago, Minneapolis and Detroit.
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.
The purchase price for all Peak Resorts common stock is estimated to be $264 million, 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 transaction has been approved by both companies’ Boards of Directors. The Peak Resorts Board of Directors also recommends that Peak Resorts’ shareholders approve the transaction.
The transaction is expected to close this fall. Upon closing, Vail Resorts says it plans to retain the vast majority of each resort’s employees.
