Vail agrees to purchase four more resorts
June 7, 2018
Owners of a Vail Resorts' Epic Pass for the 2018-19 season will have four more options when it comes to skiing and snowboarding next winter.
Vail Resorts, Inc. announced in a statement on June 4, it has entered into an agreement to purchase Triple Peaks, LLC, the parent company of Okemo Mountain Resort in Vermont, Mount Sunapee Resort in New Hampshire, and Crested Butte Mountain Resort in Colorado, and in a separate transaction will purchase Stevens Pass Resort in Washington.
Vail Resorts will purchase Triple Peaks, LLC, from the Mueller family for a price of $82 million, according to the company, subject to certain adjustments. At closing, Triple Peaks will pay $155 million to pay off the leases that all three resorts have with Ski Resort Holdings, LLC, an affiliate of Oz Real Estate, with funds provided by Vail Resorts. Stevens Pass was purchased for a price of $67 million.
Both transactions are subject to certain closing conditions, including regulatory approvals.
When the deals close, the 2018-19 Epic Pass, Epic Local Pass, Epic Australia Pass, and Epic Military Pass will include unlimited and unrestricted access to all four resorts, according to Vail Resorts, with seven and four unrestricted days for the Epic 7 Day and Epic 4 Day passes, respectively.
"Together, the acquisitions of Okemo, Mount Sunapee, Crested Butte, and Stevens Pass will significantly enhance the Vail Resorts' network of resort experiences, adding even more variety and choice for all of our pass holders and guests. Okemo and Mount Sunapee are terrific complements to Stowe in the Northeast, as is Crested Butte to our four Colorado resorts, and Stevens Pass for our Whistler Blackcomb and Seattle guests," said Rob Katz, Chairman and Chief Executive Officer of Vail Resorts in a statement.
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"Additionally, each of these resorts will individually offer guests from around the world entirely new and distinctive experiences in extraordinary locations from coast to coast."
After closing the two transactions, Vail Resorts plans to invest $35 million over the next two years across the four resorts, according to the company, in addition to annual ongoing capital expenditures that are expected to increase by $7 million to support the addition of these four resorts. Together, these acquisitions are expected to generate incremental annual earnings before interest, taxes, depreciation and amortization in excess of $35 million in Vail Resorts' fiscal year ending July 31, 2019.
Vail's has three resorts in the Truckee-Tahoe area — Kirkwood Mountain, Heavenly Mountain Resort, and Northstar California Resort, which is owned by EPR Properties and leased to Vail Resorts.
The transactions for Triple Peaks and Stevens Pass Resort are expected to close this summer, according to Vail Resorts.
Justin Scacco is a reporter for the Sierra Sun. Contact him at email@example.com.