Vail Resorts, Inc. (NYSE: MTN) today announced that the Company has closed on its acquisition of Peak Resorts, Inc. (NASDAQ: SKIS) for a purchase price of $11.00 per share. With this acquisition, Vail Resorts has added 17 U.S. ski areas to its network of world-class resorts, bringing its total number of owned and operated resorts to 37 worldwide.
The 17 new resorts are located in the Northeast, Mid-Atlantic and Midwest, near major metropolitan areas including New York, Boston, Washington, D.C., Baltimore, Philadelphia, Cleveland, Columbus, St. Louis, Kansas City and Louisville.
"We are thrilled that with this acquisition, skiers and riders living in and around some of the biggest cities in the country will now have access to both ski close to home and at renowned mountain resorts around the world – with just one pass," said Rob Katz, chairman and chief executive officer of Vail Resorts. "We are excited to welcome each of these ski areas into the Vail Resorts family and to continue to invest in what makes them unique."
The new resorts in the Northeast are: Mount Snow in Vermont; Hunter Mountain in New York; and Attitash Mountain Resort, Wildcat Mountain and Crotched Mountain in New Hampshire. They join the Company's existing Northeast resorts – Stowe Mountain Resort and Okemo Mountain Resort in Vermont, and Mount Sunapee Resort in New Hampshire – and together will provide skiers and riders incredible variety and choice in the region.
In the Mid-Atlantic, the acquired resorts are: Liberty Mountain Resort, Roundtop Mountain Resort, Whitetail Resort, Jack Frost and Big Boulder in Pennsylvania.
In the Midwest, the new resorts are: Alpine Valley, Boston Mills, Brandywine and Mad River Mountain in Ohio; Hidden Valley and Snow Creek in Missouri; and Paoli Peaks in Indiana. They join the Company's other Urban resorts in the Midwest which draw guests from Chicago, Detroit and Minneapolis. Those resorts are: Wilmot Mountain in Wisconsin; Mt. Brighton in Michigan; and Afton Alps in Minnesota.
The 2019-20 Epic Pass, Epic Local Pass, Epic Australia Pass and Military Epic Pass now include unlimited and unrestricted access to each of the 17 ski areas, in addition to the access provided to some of the world's most well-known resorts including Vail, Whistler Blackcomb, Park City and Breckenridge. Guests with an Epic Day Pass are also able to access these 17 ski areas as a part of the total number of days purchased. For the 2019-20 season, Vail Resorts will honor all Peak Resorts pass products and continue to sell them through the fall. Current Peak Resorts' pass holders now have the option to upgrade to an Epic Pass or Epic Local Pass.
Following today's closing, Vail Resorts plans to invest approximately $15 million over the next two years in one-time capital spending to elevate the guest experience at these resorts. Additionally, the Company's annual ongoing capital expenditures are expected to increase by approximately $10 million to support the addition of the new ski areas.
Peak's common stock will be delisted from the Nasdaq Global Select Market effective as of the close of trading on September 24, 2019.
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