CEO of Vail Resorts Rob Katz called Whistler Blackcomb, “one of the most iconic mountain resorts in the world, with an incredible history, passionate employees, and a strong community”. The deal stipulates that Vail Resorts will acquire all shares of Whistler Blackcomb’s stock, worth roughly $1.1 billion in USA dollars, while Whistler’s shareholders will receive $13.33 in cash for each stock, plus 0.09 shares of Vail Resorts stock.
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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. Whistler Blackcomb passes for this ski season will be honored, and future passes will be sold as part of Vail’s season-pass program, which gives holders access to a network of resorts. It also bought Australia’s largest mountain resort – the Perisher ski resort – a year ago. The resort is still waiting on final approvals from British Columbia before shovels can hit the ground, but Brownlie said Vail is fully supportive of the proposal, and the merger will have no effect on its timeframe or completion. Wall Street appeared to like the deal too as Vail Resorts rose sharply in NY trading. The deal is one of the ski-resort industry’s largest acquisitions ever.
“We believe that working with Vail will accelerate our business plan and we look forward to go ahead [with the agreement]”, said Mr. Brownlie. CIBC cut shares of Whistler Blackcomb Holdings from an “outperform” rating to a “sector perform” rating and boosted their price objective for the company from C$31.00 to C$37.50 in a report on Tuesday. “We expect the transaction to close this coming fall”.
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.
Vail Resorts is renowned for buying low, usually paying well below the ski industry’s typical resort pricing of eight to nine times a resort’s annual earnings before interest, taxes, depreciation and amortization, or EBITDA. “And that’s what’s really important to us”. “All of our resorts benefit from that stability and long-term security”. He will also become a member of the senior leadership team of Vail Resorts’ mountain division. The Whistler Blackcomb Renaissance – the largest investment plan in its 50-year history – aims to develop year-round, any-weather amenities that can reduce financial reliance on wintery conditions.
Whistler Blackcomb, which opened in 1966, is a destination for skiers from as far away as Australia and Beijing. In May the resort company said skier visits for 2015-16 climbed 26 percent to more than 2.2 million, an all-time high.
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A major Colorado ski area and resort hotel operator with major holdings in Wyoming has completed an agreement in principal to purchase the largest ski resort in North America for $1.05 billion in cash and stock.
