Vail Resorts, which has been enthusiastically acquiring some of America’s top ski resorts, is now establishing a toehold north of the border. -Canada border and offers stability as climate change becomes a bigger issue.
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Vail to buy Whistler Resort For $1.4 BillionThe owner of one of the largest ski centers in Canada, Whistler Blackcomb Holdings, will now be owned by American Vail Resorts as part of a friendly transaction valued at approximately $ 1.4 billion.
Shares of Whistler-Blackcomb jumped to a new all-time high when markets opened Monday, rising above $36 Canadian ($27.36) per share in Toronto. When the US dollar strengthens, it will generate flows of up to 2.6 million visitors into the resort this year. Furthermore, he assured that the transaction had nothing to do with the weak Canadian dollar.
Whistler chief executive officer Dave Brownlie said the deal, worth about $1.39-billion, would boost the Canadian company’s financial heft and marketing, among other things.
As of mid-morning, Vail Resorts, trading as MTN on the New York Stock Exchange, was trading at $152.97 per share, up $9 on the day. Stateside, Vail rose 6 per cent to $US153.02.
Vail Resorts operates nine mountain resorts and two ski areas in the USA and Australia, meaning the Whistler Blackcomb sale would be its first foray into Canada. Whistler Blackcomb is one of the worlds most visited ski resorts and could be considered Canada’s most famous and widely renowned skiing destination.
This still looks set to go ahead after Vail Resorts said it is committed to investing substantially in Whistler’s mountain infrastructure, and will continue to build community and stakeholder support for the Renaissance project. One of Whistler’s board members will join Vail Resorts’ board of directors, pending a nomination from the company. The aggregate cash component of the deal is estimated to be $513 million, which Vail Resorts intends to finance through an expansion of an existing credit facility. Brownlie said he’s had discussions with local city-council members, who have been supportive, and that he’s reached out to the chiefs of both the Squamish and Lil’wat.
December 2008 – A gondola began operating to connect Whistler and Blackcomb mountains. A competitor and site of the 2010 Winter Olympics, Whistler has been a perennial profit victor too.
The acquisition now gives Vail Resorts properties in three different countries, including Australia and their 12 locations in the U.S. As temperatures rise globally, ski areas worldwide have had to delay their season openings or close slopes early.
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Whistler Blackcomb will continue to honor their season pass products (including the Mountain Collective Pass) for the 2016-2017 season, with plans to integrate into the Epic Season Pass for the 2017-2018 season. And in the future, if the Canadian dollar strengthens against its USA counterpart, locals would be able to capitalize on their currency and visit Vail’s US locations. The cash value of the deal is $513 million (C$676 million).
