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.
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Vail acquired Perisher in 2015, the largest ski resort in the Southern Hemisphere.
The company has moved aggressively in recent years to geographically diversify in response to increasingly unpredictable weather and snowfall. Any Epic Pass holder will have access to the park during the 2017-18 season, meaning Asian skiers can visit both locations. “That’s going to continue as we work with our new colleagues at Vail Resorts as well as our employees, local businesses, community and government stakeholders to make Whistler Blackcomb better than ever”. As temperatures rise globally, many ski resorts, including those in California, have had to delay their season openings or close early due to lack of snow.
“We will also continue our discussions with the Squamish and Lil’wat First Nations, on whose traditional lands we operate, regarding a business partnership that will benefit our communities, our province and our company for decades to come”, said Brownlie.
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.
Growth plans at Whistler include an indoor adventure center and a six-star luxury hotel.
“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. Vail Resorts, which already owned the largest USA resort with Park City (the now unified Canyons Resort and Park City Mountain Resort) does not release state- or resort-specific visitation numbers; but, in its most recent fiscal report from the third quarter, it confirmed that visits were up almost 14 percent this past season. Vail will also assume about $132 million in Whistler Blackcomb’s outstanding debt. Whistler Blackcomb shareholders will receive C$ 17.50 per share in cash and 0.0975 shares of Vail Resorts common stock, for a total value of C$ 36.00 per share.
“Whistler Blackcomb, with its unprecedented acreage of high alpine terrain and Glacier bowls, is well positioned, but by no means immune to these [weather] challenges”, said Brownlie.
Shares in Whistler Blackcomb Holdings gained nearly 46 percent to finish at $36.63 Canadian.
The Whistler Blackcomb acquisition is expected to finalize in the fall of 2016. But she doubts having Vail Resorts as the new owners will impact the quality of the experience in Whistler, given the company’s deep pockets and high profile.
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“With the strength of Vail”, he said, “the resources of Vail, the marketing network and being part of a resort company with the strength and geographical diversification, it just made sense”. 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.
