Vail to Acquire Peak Resorts for $264 Million

Vail Resorts has agreed to purchase Peak Resorts, the publicly-traded parent company of 17 ski resorts in the northeast and midwest.  The deal will more than double the number of mountains Vail operates and expand markets such as New York, Philadelphia and Washington, D.C. for the Epic Pass.  Mountains to be acquired include Mt. Snow in Vermont, Hunter Mountain in New York and Attitash in New Hampshire.  Combined, Peak Resorts operates 109 aerial lifts in seven states.  Vail will be up to 37 mountains in three countries with 437 lifts upon closing.

Peak itself closed on a $76 million purchase of Snow Time, Inc. less than eight months ago, yet the merger and acquisition action continues. “We are incredibly excited to have the opportunity to add such a powerful network of ski areas to our Company,” said Rob Katz, chairman and chief executive officer of Vail Resorts in an early morning announcement. “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 deal must still be approved by Peak’s shareholders, which are being offered $11.00 per share.  When the deal closes, Epic Pass holders will receive unlimited, unrestricted access to all 17 resorts.

IMG_3944
The flagship Bluebird Express at Mt. Snow will now truly be a sister lift to Sunburst Six at Okemo.

Vail plans to spend approximately $15 million for one-time capital improvements over the first two years and an ongoing $10 million per year to support the Peak properties.  Vail’s EBITDA is expected to increase by $60 million annually with the new additions.  The transaction is expected to close in the fall.

Advertisements

News Roundup: Norway

  • Actaris Impact Fund still wants to buy Saddleback but no deal has been reached after more than a year.
  • The Banff-Norquay gondola project faces stiff headwinds from Parks Canada.
  • The latest podcast from Vail Resorts CEO Rob Katz highlights how the company takes over operations at newly-acquired resorts.
  • A judge rejects the Hermitage Club’s proposed restructuring plan as members look to reopen under new management.
  • In other Hermitage news, a Florida bank seeks to repossess 46 snow guns.
  • Here is the complete incident narrative from the February SeaWorld gondola deropement.
  • Lift construction gets underway at Skeetawk, America’s first all-new ski area since Cherry Peak in 2015.
  • Village construction resumes at Tamarack with Wildwood Express installation to follow this fall.
  • A helicopter delivers most of the new Steamboat gondola towers.
  • Last week’s gondola incident at Vail was not a result of tampering or sabotage.
  • Medellín’s sixth urban gondola, Line P, is on track to open in December.
  • After 1,231 days as Yosemite Ski & Snowboard Area, the Badger Pass name returns thanks to a $12 million settlement between the National Park Service and two competing concession companies.
  • I spoke too soon on Eaglecrest possibly building Alaska’s first gondola.  Icy Strait Point on Chichagof Island is planning a gondola project to open as soon as next summer.
  • The haul rope is spliced for a rare fixed grip chondola in Illinois.
  • Mi Teleférico in La Paz broke its own daily record again on Monday with 583,841 riders, more than average weekday ridership for Boston’s three subway lines combined.

  • Municipally-owned Great Bear resorts to private fundraising in hopes of replacing its Borvig chairlift.
  • Placer County leaders will vote Tuesday on the Squaw-Alpine gondola.
  • Simon Fraser University steps up its Burnaby Mountain gondola marketing.
  • The Los Angeles Griffith Park gondola study is underway.
  • Eagle’s Rest 2.0 nears completion at Jackson Hole.

News Roundup: Tallying

  • Just in time for summer, the Sea to Sky Gondola welcomes ten more cabins to the line, increasing capacity by 50 percent.
  • The Idaho Springs, Colorado city council may vote Monday on rezoning for a proposed 17 tower, 27 cabin gondola lift.
  • Hermitage Club founder Jim Barnes explains his reorganization plan but for now, a receiver remains in place.
  • Snowshoe is purportedly planning to replace Powder Monkey with a fixed grip quad next summer.
  • Although it doesn’t build lifts in the United States, Bartholet has built some very slick machines lately.
  • The Indy Pass grows to 28 resorts.
  • A rocket from Syria damages a ski lift at Israel’s Mt. Hermon, where a Leitner gondola is also currently under construction.
  • Vail Resorts CEO Rob Katz launches a podcast with a great first episode about the Park City acquisition.
  • The City of Steamboat is still weighing options for bringing in a private operator and/or replacing Barrows at Howelsen Hill.
  • California Express notches another approval but litigation could be coming.
  • Vail Resorts reports a great quarter: skier visits up 14.3 percent and lift revenue up 16.4 percent with season pass sales for next year trending up 9 percent and 13 percent in units and dollars.  “We are still absolutely aggressive on looking for additional resorts that we think add to our network and make the experience that we provide our guests better,” says Rob Katz on the quarterly conference call.
  • Quebec tallied 4.6 million skier visits last winter, a ten year high for a province with three new chairlifts already under construction for next year.
  • New Hampshire resorts logged 100,000 more skier days than 2017-18.
  • Colorado is king with 13.1 million estimated skier visits, a new record.
  • This was supposed to be the summer the town of Grafton, Illinois celebrated a new gondola.  Instead, 2019 will be remembered for the flooding that has thrown a wrench in its construction.
  • Teo II is approved but has no timeline for construction yet.

News Roundup: 3S

News Roundup: Lots of Euros

News Roundup: Heating Up

News Roundup: Passcape

  • LST Ropeways’ prototype detachable chairlift in France is once again open.
  • Despite a wild winter in Colorado, the shiny new Glenwood Gondola is tracking towards a March 16th launch.
  • Mt. Spokane’s first new lift in four-plus decades has been spinning since December but the mountain’s nonprofit operator is still seeking donations to help pay for it.
  • Epic Passes go on sale and a new Epic Day Pass offers Vail Resorts skiers the option to pre-buy a flexible number of days at a big discount.
  • The Mountain Collective Pass is back for 2019-20 and, as expected, no longer includes Sun Valley or Snowbasin.
  • Following the collective model, an Indy Pass is brewing with eleven regional resorts already signed on.
  • Court documents suggest the Hermitage Club may file for Chapter 11 bankruptcy protection.
  • The highly anticipated Star Wars: Galaxy’s Edge opens at Walt Disney World Resort August 29th, which would be a great date for the Skyliner to start carrying guests to it.
  • Aspen voters approve the Lift 1 corridor project by 26 votes, but it may be a few years before a Telemix joins the Ajax lift fleet.
  • Two years after a fatal ride accident blamed on corrosion, the Ohio State Fair is spending $116,000 to replace all the carriers on a different attraction – its chairlift.
  • Doppelmayr is looking for workers to help build lifts across the country this summer.
  • Vail Resorts season-to-date lift revenue is up 9.6 percent from a year ago, with skier visits increasing 7.9 percent.
  • Attitash won’t open Summit this weekend but not for lack of trying.
  • In California, the City of Long Beach is in the very early stages of considering a multistop gondola.
  • For the first time in years, Black Mountain is opening its 1935 vintage J-Bar this weekend.

News Roundup: More Epic

  • The Spanish ski resort that closed when a chair fell from its Yan detachable quad reopens with uploading via snowcat.
  • The San Diego Fire Department performs a successful over water night evacuation of the Bayside Skyride at SeaWorld San Diego.
  • Timberline Four Seasons Resort, which has struggled with lift breakdowns and other issues of late, is closed this weekend and could be placed in receivership.
  • Snow Valley missed all of President’s weekend will remain closed indefinitely due to road damage.  Mountain High is kindly honoring their season passes during the shutdown.

Crested Butte to Replace Teocalli Lift

Just weeks after declaring the Teocalli lift wouldn’t spin this season due to needed maintenance, Crested Butte Mountain Resort today announced the Riblet double will be replaced with a new fixed-grip quad next summer.  Teocalli opened in 1979 and was the last operating Riblet lift at the resort.  Pending Forest Service approval, the larger lift will increase capacity by more than 50 percent.  The lower terminal will remain in its current location while the top station will shift closer to the Red Lady Express summit.

IMG_1996

“The realignment and improved capacity of the lift will provide an elevated on-mountain experience via quick terrain access, improved egress to the resort base area and access to Uley’s Cabin – one of CBMR’s premier on mountain restaurants,” said Tim Baker, general manager of the resort in a blog post.  “We believe this investment can provide a significant benefit to a variety of guests in the near future, and we’ll continue to listen to feedback and evaluate other potential investments that will have a similar impact for a spectrum of guests moving forward.”  Ten of Crested Butte’s eleven lifts are of Leitner-Poma lineage but no manufacturer was specified.  The new lift is the third to be announced by Vail Resorts for 2019, following the company’s commitment to replace two chairlifts at Stevens Pass next summer.  Both Crested Butte and Stevens were acquired by Vail last summer.

News Roundup: Only in Utah