Vail Resorts Inc. stated that on February 17, 2017, it entered an agreement to acquire Stowe Mountain Resort from Mt. Mansfield Company Inc., a wholly owned subsidiary of American International Group Inc., for a purchase price of $50 million, subject to certain adjustments.
Stowe Mountain Resort will be Vail Resorts’ first mountain resort on the East Coast and complements the company’s network of 10 mountain resorts and three urban ski areas.
Vail Resorts is acquiring all of the assets related to the mountain operations of the resort, including base area skier services (food and beverage, retail and rental, lift ticket offices and ski and snowboard school facilities) at Mount Mansfield and Spruce Peak. Other facilities such as the Stowe Mountain Lodge, Stowe Mountain Club, Stowe Country Club and certain real estate owned and held for potential future development will be retained by MMC.
“We’re thrilled to add Stowe Mountain Resort to our family of world-class mountain resorts. With the investments in both mountain infrastructure and base area facilities that AIG has made over the years, Stowe Mountain Resort has become the premier, high-end resort for East Coast skiers and snowboarders. We look forward to working with AIG to continue enhancing the guest experience and to ensure the resort’s long-term success,” said Rob Katz, chairman and chief executive officer of Vail Resorts.
Douglas Tymins, president and chief executive officer of AIG Global Real Estate, said, “Under Vail Resorts’ management, Stowe’s reputation as a premier ski destination with a commitment to excellent service will continue to grow. AIGGRE is looking forward to combining Vail Resorts’ tremendous mountain operations capabilities with our continued commitment to the development of the Spruce Peak community.”
Stowe Mountain Resort’s newest facilities and improvements include the Spruce Peak Adventure Center, the new Meadows Quad on Spruce Peak, Evolution Stowe’s RFID tickets, passes and gates and the new Shops at Spruce Peak. Spruce Peak also has new high-speed lifts, new base facilities and restaurants.
MMC will retain ownership of the Stowe Mountain Lodge at Stowe Mountain Resort, a 312-room hotel and spa, and additional slopeside real estate opportunities.
The transaction is subject to Vermont administrative review. At closing, the purchase price will be adjusted for certain agreed upon terms, including a reduction (or increase) in the price by the amount that the resort’s EBITDA exceeds capital expenditures for the period from November 1, 2016, through closing.
Stowe Mountain Resort is expected to generate incremental annual EBITDA in excess of $5 million in Vail Resorts’ fiscal year ending July 31, 2018.
Operations at the resort for the remainder of the 2016/17 ski season will continue in the ordinary course, as will future summer and winter seasonal hiring. Vail Resorts will be retaining the vast majority of the resort’s year-round staff.
Vail Resorts will integrate Stowe Mountain Resort into its Epic Pass and other season pass products for the 2017/18 winter season, subject to the acquisition closing.
Photo courtesy Stowe Mountain Resort
