Vail Resorts Breaks Into Canadian Market With The Friendly Acquisition of Whistler Blackcomb
On August 8, 2016 Vail Resorts Inc. announced that it has officially acquired Whistler Blackcomb Holdings Inc for $1.39 billion. It is being called a strategic business combination where Vail Resorts will receive 100% of Whistler Blackcomb Stock. Those shareholders will receive C$17.50 per share in cash and 0.0975 shares of Vail Resorts common stock, for consideration having a total value of C$36.00 per share – prices based on closing stock prices and exchange rates as of August 5, 2016. This calculates out to a cash component of C$676 million (USD $513 million) and a stock component of C$715 million (USD $543 million) or a total amount of C$1.391 billion ($1.056 billion USD).
Read the full press release from Vail Resorts
In the official press release, Dave Brownlie, Whistler Blackcomb’s CEO says that “Combining Whistler Blackcomb with Vail Resorts’ portfolio of outstanding resorts provides Whistler Blackcomb with increased financial strength, marketing exposure, guest relationships and broadens the geographic diversity of our company with resorts across the United States, as well as in Australia and Canada. This relationship will bring greater resources to support our current operations and our ambitious growth plans, including the Renaissance project, the most exciting and transformative investment in Whistler Blackcomb’s history.”
Rob Katz, Vail Resorts CEO and Chairman notes that “Whistler Blackcomb is one of the most iconic mountain resorts in the world with an incredible history, passionate employees and a strong community. 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. We are delighted to add such a renowned resort to Vail Resorts and look forward to expanding our relationships in the Sea-to-Sky community, British Columbia and Canada.”
Vail Resorts intends to continue to support the Whistler Blackcomb Experience through:
- Support for Master Development Agreements with local First Nations
- Local Leadership
- Maintain Local Employment
- Investment In The Resort Experience
They also plan to complete a renaissance project “a transformational investment which will diversify the local tourism economy; provide new four-season, weather-independent activities; and elevate Whistler Blackcomb’s core skiing, mountain biking and sightseeing experiences for decades to come.”
For skiers, the Epic Pass will not go into effect until the 17-18 winter season. The Whistler Blackcomb pass will still be in effect for 16-17.
With this acquisition, Vail Resorts increases their domination of the ski industry. They own “Vail, Beaver Creek, Breckenridge and Keystone in Colorado; Park City in Utah; Heavenly, Northstar and Kirkwood in the Lake Tahoe area of California and Nevada; Perisher in Australia; Wilmot Mountain in Wisconsin; Afton Alps in Minnesota and Mt. Brighton in Michigan” – and now Whistler Blackcomb too.
For further details on the Vail Resorts latest acquisition, read the full press release on Investors.VailResorts.com.
