The Broomfield-based resort conglomerate and the holdings company for the Canadian ski area announced the merger north of roughly $1 billion in a joint press release Monday morning. The transaction has be approved by the companies’ respective boards. Vail Resorts plans to integrate Whistler into its Epic Season Pass for the 2017-18 winter season.
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Whistler’s shares jumped 47.6 percent to an all-time high of C$37.10, while Vail’s shares rose 9.7 percent to a record high of $157.95.
“With our combined experience and expertise, together we will build upon the guest experience at Whistler Blackcomb while preserving the unique brand and character of the resort as an iconic Canadian destination for guests around the world”, Vail Resorts CEO Rob Katz said in a statement. Whistler Blackcomb shareholders are being offered $676 million (£518m) of cash and Vail stock worth $715 million (£549m), making the deal worth almost $1.4 billion (£1bn). The cash and stock deal triples the 2010 investment of shareholders who picked up Whistler Blackcomb from hedge fund Fortress Investments in an initial public offering.
Dave Brownlie, CEO and president of Whistler Blackcomb, however, feels the merger will only net positive results within the newly-expanded Vail system, and that impact will be nonexistent or minimal at the location of Vail’s home base.
Wilhelm-Morden predicts Whistler will attract even more visitors as Vail Resorts passes can be used any of its resorts worldwide. “Vail now owns the two largest ski areas on the continent, adding to its global Epic Pass another 8,171 acres of incredible terrain”.
Located about 120 kilometres north of Vancouver, Whistler Blackcomb is both the largest and the most popular ski destination in North America, with more than two million people visiting a year ago.
“In the ski industry, all that matters is the long term, and we know very well”.
The company was formed in 1997 through the merger of Whistler and Blackcomb mountain resorts.
Whistler Blackcomb reported 2.3 million in revenue from ticket sales, retail and rental, food and beverage and ski school operations in fiscal 2015, up from $254.5 million the previous year.
Brownlie said Vail Resorts’ offer is a combination of cash and stock.
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Vail executives said on a conference call they they expect the deal and a few other initiatives to contribute C$170 million to its resort EBITDA in 2018. This year, the company faced strong criticism from Park City locals in Utah for attempting to trademark the phrase “Park City”, and eventually withdrew its trademark application.
