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Big news and an end to uncertainty for Utah skiers.
PR Newswire
BROOMFIELD, Colo., Sept. 11, 2014
BROOMFIELD, Colo., Sept. 11, 2014 /PRNewswire/ -- Vail Resorts, Inc. (NYSE:
MTN) today announced that the Company has acquired Park City Mountain Resort
(PCMR) from Powdr Corp. for $182.5 million in cash, subject to certain
post-closing adjustments. The acquisition includes all of the assets of
Greater Park City Company (GPCC), the land used for ski terrain at the resort
held by Ian Cumming, and certain base parking lands owned by Powdr Development
Corp., which have approved zoning for approximately 687,000 square feet of
residential and commercial development. The acquisition does not include the
Gorgoza tubing operation, located approximately 10 miles from the resort,
which will be retained by Powdr Corp.
With the acquisition, all aspects of the previously disclosed litigation with
respect to PCMR have been settled and this dispute will no longer pose any
future threat to disrupt the operation of the resort.
"First and foremost, we are very pleased to bring a permanent end to this
dispute and provide assurance to the guests and employees of PCMR, and to
everyone in the Park City community, that they no longer have to worry about
any disruption to the operation of the Resort. This has been a difficult
period for everyone involved and I commend John Cumming and Powdr Corp. for
helping to find a solution to this situation," said Rob Katz, chairman and
chief executive officer of Vail Resorts.
"Park City Mountain Resort is one of the most spectacular mountain resorts and
iconic brands in the ski industry and I am proud to have the resort become a
part of Vail Resorts. The acquisition will allow us to immediately bring Park
City Mountain Resort onto the Epic Pass, which will now offer skiers from
across the country and around the world access to 22 resorts, including
Canyons in Park City, Utah; Vail, Beaver Creek, Breckenridge and Keystone in
Colorado; and Heavenly, Northstar and Kirkwood in Tahoe. We look forward to
working collaboratively with the entire Park City community, as well as city
and county officials, as we chart the future for the resort, including how we
can best bring the Canyons and Park City ski experiences together to create
the largest mountain resort in the United States," he added.
Blaise Carrig, president of Vail Resorts, will act as interim chief operating
officer for the resort.
"We understand that this acquisition represents a change for all of the
employees of PCMR and I look forward to working with everyone on the PCMR team
as we develop a vision for the future of the resort," said Carrig.
Mountain operations of PCMR and Canyons will remain separate for the 2014-2015
ski season. However, the Epic Pass and Epic Local Pass will be valid at PCMR.
All PCMR passes for the 2014-2015 ski season will continue to be honored and
can be exchanged or upgraded for a season pass that will also be valid at
Canyons. The majority of all lift tickets sold at either resort will be valid
at both PCMR and Canyons.
The Company also announced that due to the acquisition of PCMR, it expects $35
million in incremental EBITDA in Fiscal Year 2015, excluding any transaction
and transition costs. The Company anticipates additional contributions from
the acquisition in future years, particularly after it can connect the
experience of the two resorts together. The Company expects the acquisition to
provide significant tax benefits over the next 15 years, including an average
of approximately $12 million in additional annual taxable depreciation and
amortization expense through Fiscal 2021. The Company will be making
additional comments on PCMR and the Company's outlook in its 2014 fiscal
year-end investor conference call on Sept. 24.
PR Newswire
BROOMFIELD, Colo., Sept. 11, 2014
BROOMFIELD, Colo., Sept. 11, 2014 /PRNewswire/ -- Vail Resorts, Inc. (NYSE:
MTN) today announced that the Company has acquired Park City Mountain Resort
(PCMR) from Powdr Corp. for $182.5 million in cash, subject to certain
post-closing adjustments. The acquisition includes all of the assets of
Greater Park City Company (GPCC), the land used for ski terrain at the resort
held by Ian Cumming, and certain base parking lands owned by Powdr Development
Corp., which have approved zoning for approximately 687,000 square feet of
residential and commercial development. The acquisition does not include the
Gorgoza tubing operation, located approximately 10 miles from the resort,
which will be retained by Powdr Corp.
With the acquisition, all aspects of the previously disclosed litigation with
respect to PCMR have been settled and this dispute will no longer pose any
future threat to disrupt the operation of the resort.
"First and foremost, we are very pleased to bring a permanent end to this
dispute and provide assurance to the guests and employees of PCMR, and to
everyone in the Park City community, that they no longer have to worry about
any disruption to the operation of the Resort. This has been a difficult
period for everyone involved and I commend John Cumming and Powdr Corp. for
helping to find a solution to this situation," said Rob Katz, chairman and
chief executive officer of Vail Resorts.
"Park City Mountain Resort is one of the most spectacular mountain resorts and
iconic brands in the ski industry and I am proud to have the resort become a
part of Vail Resorts. The acquisition will allow us to immediately bring Park
City Mountain Resort onto the Epic Pass, which will now offer skiers from
across the country and around the world access to 22 resorts, including
Canyons in Park City, Utah; Vail, Beaver Creek, Breckenridge and Keystone in
Colorado; and Heavenly, Northstar and Kirkwood in Tahoe. We look forward to
working collaboratively with the entire Park City community, as well as city
and county officials, as we chart the future for the resort, including how we
can best bring the Canyons and Park City ski experiences together to create
the largest mountain resort in the United States," he added.
Blaise Carrig, president of Vail Resorts, will act as interim chief operating
officer for the resort.
"We understand that this acquisition represents a change for all of the
employees of PCMR and I look forward to working with everyone on the PCMR team
as we develop a vision for the future of the resort," said Carrig.
Mountain operations of PCMR and Canyons will remain separate for the 2014-2015
ski season. However, the Epic Pass and Epic Local Pass will be valid at PCMR.
All PCMR passes for the 2014-2015 ski season will continue to be honored and
can be exchanged or upgraded for a season pass that will also be valid at
Canyons. The majority of all lift tickets sold at either resort will be valid
at both PCMR and Canyons.
The Company also announced that due to the acquisition of PCMR, it expects $35
million in incremental EBITDA in Fiscal Year 2015, excluding any transaction
and transition costs. The Company anticipates additional contributions from
the acquisition in future years, particularly after it can connect the
experience of the two resorts together. The Company expects the acquisition to
provide significant tax benefits over the next 15 years, including an average
of approximately $12 million in additional annual taxable depreciation and
amortization expense through Fiscal 2021. The Company will be making
additional comments on PCMR and the Company's outlook in its 2014 fiscal
year-end investor conference call on Sept. 24.
