Vail Resorts to Acquire Whistler Blackcomb

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Vail Resorts to Acquire Whistler Blackcomb

SAM Magazine—Broomfield, Colo., and Whistler, British Columbia, Aug. 8, 2016—Vail Resorts (VR) is purchasing Whistler Blackcomb, the largest ski resort in North America. In what the company calls a “strategic business WhistlerBlackcomb emailsize combination,” VR will acquire 100 percent of Whistler Blackcomb stock in a cash and stock deal worth a total of about USD$1.056 billion. The transaction is expected to close in fall of 2016.

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Whistler Blackcomb shareholders will receive C$17.50 per share in cash and 0.0975 shares of Vail Resorts common stock, which values the deal at C$36 per share—a 43 percent premium to the Aug. 5 stock price. When the transaction closes, Whistler Blackcomb shareholders collectively will own about 10 percent of Vail Resorts outstanding common stock. The sale has been approved by the VR and WB boards, but still requires shareholder and government approval.

The aggregate cash component of the offer is estimated to be C$676 million (USD$513 million), which VR plans to finance through an expansion of its existing credit facility. The aggregate stock component of the offer is estimated to be C$715 million (USD$543 million), based on closing stock prices and exchange rates as of Aug. 5, 2016.

When the Toronto Stock Exchange (TSX) closed on Friday, Aug. 5, Whistler Blackcomb shares were trading at C$25.14. Following the announcement of Vail’s acquisition on Monday, shares were up nearly 44 percent to C$36.12 before noon.

“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,” said Dave Brownlie, Whistler Blackcomb’s chief executive officer. Brownlie will continue leading the resort as its chief operating officer and will become a member of the Vail Resorts mountain division senior leadership team. Whistler Blackcomb will nominate one member of its board to the Vail Resorts board of directors.

Vail Resorts CEO Rob Katz added, “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.”

Product integration isn’t going to happen immediately. Whistler Blackcomb will honor the resort’s existing season pass products through the 2016-17 season. VR plans to add Whistler Blackcomb into its Epic Season Pass and other season pass products for the 2017-18 season.