Vail Resorts buys Whistler Blackcomb for $1.4B

http://www.cbc.ca/news/business/whistler-blackcomb-vail-resorts-1.3711427

"Whistler-Blackcomb Holdings — owner of one of Canada's biggest ski resorts — will be purchased by Colorado-based Vail Resorts Inc. under a friendly deal announced this morning by the companies.

Whistler CEO Dave Brownlie says Vail would provide greater financial strength and greater diversity through alliances in the United States, Australia and Canada.

Vail CEO Rob Katz says the combined expertise of the two companies will improve the experience for guests and preserve the brand and character of the B.C. all-season resort — which is about 125 kilometres north of Vancouver.

Whistler-Blackcomb shareholders are being offered $676 million of cash and Vail stock worth about $715 million — making the deal worth nearly $1.4 billion.

Whistler-Blackcomb shares closed in Toronto on Friday at $25.14 — giving it a market value of about $960 million prior to Monday's announcement."

A smart move for Whistler/Blackcomb with the Canadian dollar being so weak?

We were planning on doing a Whistler trip this year.  Will be very interested to see when Whistler/Blackcomb gets included on Epic Pass

That Epic pass just got a lot better for those that can take more than one week out west per year.  Not that many people really can afford to do that.  It would seem to only be a matter of time before Vail turns its attention East though probably not this year as they have burned all their cash and debt capacity on this deal.

Coach Z wrote

That Epic pass just got a lot better for those that can take more than one week out west per year.  Not that many people really can afford to do that.  It would seem to only be a matter of time before Vail turns its attention East though probably not this year as they have burned all their cash and debt capacity on this deal.

Good deal for people who live out west, though.

Too bad they treat their employees like shit, or that would be a good company to work for.

My understanding is that W-B won't be on the Epic Pass until the 2017-18 season.  W-B is committed to the Mountain Collective Pass for 2016-17.  The MCP went on sale in March so would be quite an outcry if that contract was changed for the upcoming season.

I hope Vail just siphons off the masses to their overcrowded, overpriced "experiences" and leaves the rest of the good mountains to skiers.
Looks like Benny is never returning to WB in his life. Place ain't that great, anyway. Rains half the time. I can get that n Vermont. Almost like Vail product anyway, with the crowds and high speed this and that everywhere. Good fit.

Nice price tag.

http://unofficialnetworks.com/2016/08/vail-resorts-buys-whistler-blackcomb-for-1-39-billion

There's already a thread on this topic.

WB has some incredible terrian and lots of it.  Becuase if the way they open terrian on snow days it gets skied out so fast.  The locals totally can slay pow.

Check the times of the 2 posts.

playoneontv wrote

Check the times of the 2 posts.

Check the dates.

mattchuck2 wrote

playoneontv wrote

Check the times of the 2 posts.

Check the dates.

D'Oh!!

probably had something to do with being a new poster and getting rights as I saw the other post before this one just showed up today.

probably should combine the two

http://www.wsj.com/articles/vail-resorts-to-buy-whistler-blackcomb-1470656971

Given Vail's reasons from a business perspective on why they did this.  States as the main reason being strengthening its season pass product.

Interestingly it goes on to talk about Vail's other strategy to buy ski areas close to major cities.  They recently bought the biggest ski areas near both Minneapolis and Chicago to use as feeders to their out west offerings.  I grew up skiing at Wilmot just across the WI boarder from IL and about 45 mins from the Chicago suburbs.  They actually have one chair and a couple of runs in IL.  With this strategy it would seem only a matter of time before they turn their attention to the East - Sno's beloved MC would be a prime buy for Vail and Windham would make a really good fit for them with their target markets.

Sorry guys asleep at the switch. :)

Here's another viewpoint about the sale.  From a Vancouver paper.  The title is "New Whistler resort owner aims to make skiing more affordable" based on the idea that an Epic Pass for 2017-18 will be much cheaper than the current season pass, which is C$2000.

http://vancouversun.com/business/local-business/vail-resorts-makes-1-4-billion-takeover-offer-for-whistler-blackcomb

Coach Z wrote

http://www.wsj.com/articles/vail-resorts-to-buy-whistler-blackcomb-1470656971

Given Vail's reasons from a business perspective on why they did this.  States as the main reason being strengthening its season pass product.

Interestingly it goes on to talk about Vail's other strategy to buy ski areas close to major cities.  They recently bought the biggest ski areas near both Minneapolis and Chicago to use as feeders to their out west offerings.  I grew up skiing at Wilmot just across the WI boarder from IL and about 45 mins from the Chicago suburbs.  They actually have one chair and a couple of runs in IL.  With this strategy it would seem only a matter of time before they turn their attention to the East - Sno's beloved MC would be a prime buy for Vail and Windham would make a really good fit for them with their target markets.

Mountain Creek just got new owners, so I don't think they're selling anytime soon, unless Vail offers to buy it for a price so high that they just cannot refuse.

Windham seems to be doing pretty well as it is, and I don't think they're looking to sell anytime soon either.  It's also been speculated that Vail might buy Killington, since it would allow Powdr to get out of the East (Killington/Pico is their only eastern property).  However I think that after the Park City fight, Powder will not do any business with Vail.

Okemo is up for sale because of CNL selling out, so I think that would be a prime candidate for the mountain that Vail buys in the east.  It also fits Vail's market perfectly since it has bubble lifts, lots of grooming, homogenized straightened trails, etc.

I think Vail gets too much shit for terrain. They want a mix like anyone else. keystone describes what you are talking about, and Vail itself kind of does, but Vail is an old development. I think they're more into a model of breck or whistler itself, towns people admire backed up by good hills. kirkwood isnt "vail" but they had no trouble purchasing that.

As far as eastern resorts they might target, I think wachusett is a good fit that's under the radar.

Agree on targeting Wachusset would make sense

I can't see Powdr wanting to a deal with Vail after they made them look like fools over PC

Vail just paid a 43% premium for WB so I'm sure the new owners of MC would jump at that after the season they had last year.

Stratton.

Marcski wrote

Stratton.

Stratton is a dog. No natural snow, fully built out for properties, no new terrain to develop (I think). I'm sure its owners would get out of it in a second, but I don't think anyone would pay a premium for it so it isn't a fit for a deal with Vail.

They will scoop up the smaller areas near metros that make sense or go all in for the marquee names as they become available. As I understand it, basically every mountain in the East is for sale this summer officially or unofficially.