A snowboarder jumps through a ring of fire during a Fire and Ice performance on Whistler Mountain in Whistler, B.C. Sunday, Jan. 12, 2014. Royal Bank Of Canada increased their target price on Whistler Blackcomb Holdings from C$28.00 to C$29.00 and gave the company a “sector perform” rating in a report on Wednesday, April 20th.
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Vail Resorts Inc. announced Monday that it was purchasing Whistler Blackcomb Holdings Inc., the Canadian ski resort company, for $1.06 billion, adding to its aggressive expansion. Vail will also assume about $132 million in Whistler Blackcomb’s outstanding debt. Vail Resorts is buying with a strong American dollar and a weak Canadian dollar and about half of the deal is financed with stock that is trading at three times what it was in 2012 and 2013.
“We consider the Epic Pass to be the best value in the industry for all skiers and riders and we plan to keep it the best value”, Kelly Ladyga told CTV News in an email.
“We understand that it’s going to be managed and operated locally so that’s a good thing”, she says.
Vail’s offer was unsolicited, Whistler CEO Dave Brownlie said on a conference call, adding that there were no other bidders.
The Whistler purchase is Vail’s second expansion deal of 2016.
That’s Vail Resorts Inc., which owns similar operations in Colorado, California, and Wisconsin. Vail will acquire 100% of the stock of Whistler Blackcomb, shareholders of which will receive C$17.50 per share in cash and 0.0975 shares of Vail common stock, based on exchange rates as of last Friday. The deal has a total value of $27.36 a share, or 43 percent more than Whistler Blackcomb’s closing price on August 5.
Vail Resorts are also among the priciest mountains to ski, particularly in the U.S.
He mentions how it supports their “ambitious growth plans”, including the Renaissance project; an initiative to make the resort more year-round friendly with differing activities, including a new action sports complex and an indoor “water-play” area. In January 1966, the Girabaldi Lift Company opened a four-person gondola, a double chairlift, and two T-bars with grand dreams to one day host the Winter Olympics. It has since grown to become one of the premier ski destinations in North America.
Note to readers: This is a corrected story.
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Two of North America’s biggest ski resort operators are combining in a $1.05 billion deal that allows them to benefit from currency swings on either side of the U.S.
