BROOMFIELD, Colo., Dec. 8, 2021 /PRNewswire/ -- Vail Resorts,
Inc. (NYSE: MTN) announced today that it has entered into an
agreement to purchase Seven Springs Mountain Resort in Pennsylvania from Seven Springs Mountain
Resort, Inc. As a part of the acquisition, Vail Resorts will also
acquire Hidden Valley Resort and the operations of Laurel Mountain
Ski Area. The purchase price for the ski areas, plus a hotel,
conference center and other related operations, is approximately
$125 million, subject to certain
adjustments.
"We are incredibly excited to have the opportunity to add Seven
Springs to our family of resorts along with Hidden Valley and Laurel Mountain," said Kirsten Lynch, chief executive officer of Vail
Resorts. "As a company, we have been focused on acquiring resorts
near major metropolitan areas as we know many skiers and riders
build their passion for the sport close to home. These great ski
areas in Pennsylvania are a
perfect complement to our existing resorts, creating a much
stronger connection and compelling offering to our current and
future guests in Pittsburgh as
well as those in other critical markets such as Washington, D.C., Baltimore and Cleveland."
Seven Springs is Pennsylvania's
premier four-season family resort. It is located one hour southeast
of Pittsburgh and is among the
largest ski resorts in Pennsylvania with 285 skiable acres and 750
vertical feet. In addition to skiing and snowboarding, Seven
Springs offers significant resort amenities, including a 418-room
hotel, conference center, a full-service spa and tubing.
Hidden Valley offers 110 skiable
acres and 470 vertical feet, with 26 slopes and trails and two
terrain parks. Laurel Mountain
offers 70 skiable acres and 761 vertical feet.
"The resorts truly are a part of the fabric of this region and a
critical community asset. I am extremely proud of our stewardship
of Seven Springs and its sister resorts, and even more so of all
the people who we have worked with side-by-side to transform them
into what they are today," said Robert
Nutting, president and chief executive officer of Seven
Springs Mountain Resort, Inc. "It has been an honor to be a
part of their incredible growth for more than a decade and leave
each resort a much stronger community asset than we found it."
"Vail Resorts is a perfect successor with a proven track
record of honoring the unique character of each of its resorts,"
added Nutting. "They are the industry leader in investing in the
guest experience, employee development and environmental
stewardship. We are thrilled that the resorts will now become part
of Vail Resorts' network and are confident that Vail Resorts will
continue to invest in what makes these resorts so special."
Vail Resorts is acquiring all of the assets related to the
mountain operations of the resorts and related base area lodging,
conference center and amenities. Seven Springs Mountain Resort,
Inc. is retaining select neighboring operations, including
Highlands Market, Sporting Clays at Seven Springs, Seven Springs
Golf Course and Hidden Valley Golf Club, Highlands Resort Realty
and certain real estate owned and held for potential future
development.
The transaction is expected to close this winter, however,
operations at the three resorts for the 2021-22 winter season will
continue in the ordinary course of business. Vail Resorts plans to
add access to the three resorts to select Epic Pass products for
the 2022-23 North American ski and ride season.
Additional Transaction Details
The acquisition is expected to generate incremental annual
EBITDA in excess of $15 million in
Vail Resorts' fiscal year ending July 31,
2023. This expected impact includes an estimated incremental
annual EBITDA of approximately $5
million associated with the 418-room Slopeside Hotel and
associated conference facilities and lodging operations at Seven
Springs Mountain Resort. After closing the transaction, annual
ongoing capital expenditures are expected to increase by
approximately $3 million to support
the addition of these resorts.
Vail Resorts will, subject to receipt of consent from the
Commonwealth of Pennsylvania,
assume the state land lease for Laurel
Mountain. Upon closing, Vail Resorts plans to retain the
vast majority of each resort's employees and will be working with
the local leadership teams in the coming months to determine the
right long-term management structure for the resorts.
About Vail Resorts, Inc. (NYSE: MTN)
Vail Resorts, Inc., through its subsidiaries, is the leading global
mountain resort operator. Vail Resorts' subsidiaries operate 37
destination mountain resorts and regional ski areas, including
Vail, Beaver Creek, Breckenridge, Keystone and Crested
Butte in Colorado;
Park City in Utah; Heavenly, Northstar and
Kirkwood in the Lake Tahoe area of California and Nevada; Whistler Blackcomb in British
Columbia, Canada; Perisher, Falls
Creek and Hotham in Australia; Stowe, Mount
Snow, Okemo in Vermont;
Hunter Mountain in New York; Mount
Sunapee, Attitash, Wildcat and Crotched in New Hampshire; Stevens Pass in Washington; Liberty, Roundtop, Whitetail,
Jack Frost and Big Boulder in
Pennsylvania; Alpine Valley,
Boston Mills, Brandywine and Mad
River in Ohio; Hidden Valley and Snow Creek in Missouri; Wilmot in Wisconsin; Afton Alps in Minnesota; Mt. Brighton in Michigan; and Paoli Peaks in Indiana. Vail Resorts owns and/or manages a
collection of casually elegant hotels under the Rock Resorts brand,
as well as the Grand Teton Lodge Company in Jackson Hole, Wyo. Vail Resorts Development
Company is the real estate planning and development subsidiary of
Vail Resorts, Inc. Vail Resorts is a publicly held company traded
on the New York Stock Exchange (NYSE: MTN). The Vail Resorts
company website is www.vailresorts.com and consumer
website is www.snow.com.
Forward-Looking Statements
Certain statements
discussed in this press release, other than statements of
historical information, are forward-looking statements within the
meaning of the federal securities laws, including our expectations
regarding fiscal 2023 incremental EBITDA this acquisition is
expected to generate, the expected increase in annual ongoing
capital expenditures, and the expected timing for closing of the
transaction. Readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date
hereof. All forward-looking statements are subject to certain risks
and uncertainties that could cause actual results to differ
materially from those projected. Such risks and uncertainties
include but are not limited to the ultimate duration of COVID-19
and its short-term and long-term impacts on consumer behaviors, the
economy generally and our business and results of operations,
including the ultimate amount of refunds that we would be required
to refund to our pass product holders for qualifying circumstances
under our Epic Coverage program; prolonged weakness in general
economic conditions, including adverse effects on the overall
travel and leisure related industries; willingness or ability of
our guests to travel due to terrorism, the uncertainty of military
conflicts or outbreaks of contagious diseases (such as the ongoing
COVID-19 pandemic), and the cost and availability of travel options
and changing consumer preferences; unfavorable weather conditions
or the impact of natural disasters; risks related to interruptions
or disruptions of our information technology systems, data security
or cyberattacks; risks related to our reliance on information
technology, including our failure to maintain the integrity of our
customer or employee data and our ability to adapt to technological
developments or industry trends; the seasonality of our business
combined with adverse events that occur during our peak operating
periods; competition in our mountain and lodging businesses or with
other recreational and leisure activities; high fixed cost
structure of our business; our ability to fund resort capital
expenditures; risks related to a disruption in our water supply
that would impact our snowmaking capabilities and operations; our
reliance on government permits or approvals for our use of public
land or to make operational and capital improvements; risks
associated with obtaining governmental or third party approvals;
risks related to federal, state, local and foreign government laws,
rules and regulations; risks related to changes in security and
privacy laws and regulations which could increase our operating
costs and adversely affect our ability to market our products and
services effectively; risks related to our workforce, including
increased labor costs; loss of key personnel and our ability to
hire and retain a sufficient seasonal workforce; a deterioration in
the quality or reputation of our brands, including our ability to
protect our intellectual property and the risk of accidents at our
mountain resorts; our ability to successfully integrate acquired
businesses, or that acquired businesses may fail to perform in
accordance with expectations; risks associated with international
operations; fluctuations in foreign currency exchange rates where
the Company has foreign currency exposure, primarily the Canadian
and Australian dollars; changes in tax laws, regulations,
interpretations, or adverse determinations by taxing authorities;
risks related to our indebtedness and our ability to satisfy our
debt service requirements under our outstanding debt including our
unsecured senior notes, which could reduce our ability to use our
cash flow to fund our operations, capital expenditures, future
business opportunities and other purposes; a materially adverse
change in our financial condition; adverse consequences of current
or future legal claims; changes in accounting judgments and
estimates, accounting principles, policies or guidelines; and other
risks detailed in the Company's filings with the Securities and
Exchange Commission, including the "Risk Factors" section of the
Company's Annual Report on Form 10-K for the fiscal year ended
July 31, 2021, which was filed on
September 23, 2021.
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SOURCE Vail Resorts, Inc.