Things get interesting

Who the winner?

SAM Magazine—Denver, April 10, 2017—Aspen Skiing Company and KSL Capital Partners have formed a new entity and entered into a definitive agreement to acquire Intrawest in a deal valued at $1.5 billion.

Steamboat Ski ResortSteamboat Ski ResortIntrawest resorts include Steamboat, Winter Park, Tremblant, Stratton, Snowshoe, and Blue Mountain (Ont.)

Under the terms of what the parties are calling a “merger agreement,” Intrawest stockholders will receive $23.75 in cash for each share of Intrawest common stock, representing a total valuation of approximately $1.5 billion including debt obligations to be assumed or refinanced net of cash at closing. The transaction is expected to close by the end of the third quarter of calendar year 2017 and is subject to certain closing conditions, including regulatory approvals.

“This transaction creates significant opportunity for Intrawest and delivers tremendous value to our current shareholders,” said Thomas Marano, Intrawest’s chief executive officer. “The cash consideration of $23.75 per share represents a 40 percent premium over $16.97 per share, Intrawest’s closing stock price on January 12, 2017, the trading day prior to Reuters’ report speculating that the Company was exploring a potential sale.”

He continued, “Our new partners bring additional financial resources and a shared passion for the mountains and our mountain communities. Both Aspen and KSL are committed to helping Intrawest accelerate our plans to bring more value to our guests, more opportunities for our employees, and more investment into our local communities.”

“Intrawest is a collection of remarkable properties in exceptional locations. Each has its own unique story and its own unique sense of place,” said Eric Resnick, chief executive officer of KSL. “We are committed to honoring the deep traditions of each resort, while working with Intrawest’s talented management team and employees to continue to serve both their guests and local communities.”

“We are excited to be part of the investment group that is going to work hard to help realize the collective potential of Intrawest’s portfolio of resorts,” said Mike Kaplan, chief executive officer of Aspen.

For the 2017-18 winter season, each Intrawest resort will continue to honor the resort’s existing pass products that are currently on sale, including the Rocky Mountain Super Pass + and the M.A.X. Pass.

While not a condition to the merger, Squaw Valley Ski Holdings, the parent company of Squaw Valley /Alpine Meadows resort and an affiliate of KSL, will also become part of the entity at closing, but continue to operate under its current management.

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Wow, the upstart company created by the merger just bought up Mammoth resorts (includes Bear Mountain) in California.  They now for sure rival Vail resorts is scope of holdings and rumors abound an Epic-like pass is coming likely 2018-19.  This will be an even larger impact on the ski industry than Vail grabbing Stowe.  Will likely pressure Boyne/Powdr to do more than just Max pass alone.

http://www.denverpost.com/2017/04/12/mammoth-resorts-aspen-skiing-c...

Would love to see a pass that added Killington to SR, SL and Loon.

Interesting to see where Alpine / Squaw will fall in this scenario....Aspen Ski Corp is Mgmt is Top Notch....

I think the MAX pass is the closest you're going to get.

Old Timer said:

Would love to see a pass that added Killington to SR, SL and Loon.

mountain Collective way to go, Chamonix, Valleo Nevado, Hakuba all added.   Whose up for summer trip?

Wow, the consolidation continues.

http://www.denverpost.com/2017/05/07/ski-industry-merger-antitrust-...

More interesting discussion on the industry consolidation and whether it will spawn anti-trust concerns.

Interesting. I always wondered how the SL/SR package transactions passed the state of Maine anti-trust laws.

MachSki said:

http://www.denverpost.com/2017/05/07/ski-industry-merger-antitrust-...

More interesting discussion on the industry consolidation and whether it will spawn anti-trust concerns.

Plenty of other skiing in the state?  Not a true monopoly IMO< there are many other options.  

Ripsaw said:

Interesting. I always wondered how the SL/SR package transactions passed the state of Maine anti-trust laws.

MachSki said:

http://www.denverpost.com/2017/05/07/ski-industry-merger-antitrust-...

More interesting discussion on the industry consolidation and whether it will spawn anti-trust concerns.

What % of the Maine ski industry market share do you think SL/SR combined own? I'm guessing it's pretty big. I'm just suggesting that it would be interesting to know how they passed the sniff test. After Mt Abram, Lost Valley and Shawnee Peak, the rest of the ski areas in Maine are a rounding error and I doubt those three don't amount to that much in terms of market share.

Just a guess, but I would say 75%. Obviously, they have a huge advantage w the early/late season openings and such.  Just because they have market share doesn't create monopoly, lots of other things to consider such as:  access, price, etc.  I see your point, but to my understanding of anti-trust this doesnt seem to match up.   

Ripsaw said:

What % of the Maine ski industry market share do you think SL/SR combined own? I'm guessing it's pretty big. I'm just suggesting that it would be interesting to know how they passed the sniff test. After Mt Abram, Lost Valley and Shawnee Peak, the rest of the ski areas in Maine are a rounding error and I doubt those three don't amount to that much in terms of market share.

And the definition of "market" isn't just Maine.  Many that come to Maine also could go to NH, VT, or MA.  I do think though that SR would be better if it had to directly compete with Sugarloaf.

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