Vail Resorts to buy Jack Frost/Big Boulder
Jack Frost and Big Boulder are among 17 ski areas owned by Peak Resorts Inc. to be acquired by Colorado-based Vail Resorts Inc.
Vail announced Monday it will acquire 100% of the outstanding stocks of Peak Resorts Inc. at $11 a share, with the deal to close later this fall. The estimated value of all Peak Resorts common stock is $264 million.
In addition to the local resorts, Peak also owns 15 ski areas in Vermont, New York, New Hampshire, Ohio, Missouri and Indiana, as well as Liberty Mountain, Roundtop Mountain and Whitetail, all in south-central Pennsylvania.
“Peak Resorts’ ski areas in the Northeast are a perfect complement to our existing resorts and together will provide a very compelling offering to our guests in New York and Boston,” said Rob Katz, chairman and chief executive officer of Vail Resorts, in a press release.
Both parties expect operations at all Peak Resorts ski areas to continue operating business as usual. Once the deal has closed, Vail Resorts plans to keep the majority of the resorts’ employees.
“Vail Resorts has a proven track record of celebrating the unique identity of its resorts, while continually investing in the guest and employee experience. For this reason, we are confident that our resorts and employees will continue to thrive within the Vail Resorts network,” said Timothy Boyd, president and chief executive officer of Peak Resorts.
Vail plans to invest about $15 million over the next two years in one-time capital spending. It currently owns 17 world-class mountain resorts and three urban ski areas in Colorado, Utah, California, Nevada, Washington, Wisconsin, Minnesota, Michigan, Vermont, New Hampshire, and internationally in Australia and Canada. They also own the Grand Teton Lodge co. and Rock Resorts brand of casual elegant hotels
For skiers who hold Peak resorts’ passes, Vail Resorts will continue to honor and sell them with the option to upgrade to its Epic Pass or Epic Local Pass, following closing of the transaction.