News Search

Push to The Latest: No

SAM Magazine—Denver, May 11, 2017—The Denver Post resort business reporter Jason Blevins pored through Intrawest's 273-page PREM 14C, a preliminary information statement relating to a merger or acquisition that the company filed with the Securities and Exchange Commission, and found some pretty neat stuff regarding the deal—and the value of several otherwinterpark esize recent transactions as well.

According to Blevins' summary, 173 potential buyers contacted Intrawest's financial advisors between December and February, 16 of them “strategic partners in the global ski industry.” By mid-February, the list was pared to six: three ski area operators and three financial firms.

KSL Capital, which already owned Squaw Valley Alpine Meadows, led with a cash bid for $23 to $26 per share. Four other groups offered between $19 and $23 a share. Aspen SkiCo was interested in buying Steamboat, Winter Park, and Canadian Mountain Holidays—for which it offered $1.129 billion. It also offered $878 million for Winter Park and Steamboat by themselves. But Intrawest wanted to sell the company whole. So, SkiCo and KSL teamed up on a deal worth $1.7 billion, or 10.3 times EBITDA (earnings before interest, taxes, depreciation, and amortization).

Historically speaking, that valuation is a bit high. According to the report, “The median for 17 various deals since 2009 was 8.8 times EBITDA.” Previously, some transactions were valued as low as 6 times EBITDA. But recent valuations have rocketed higher. Vail Resorts' Whistler Blackcomb purchase valued the resort at 15.7 times EBITDA; its acquisition of Stowe Mountain Resort is expected to close at 10 times EBITDA. CNL sold its collection of ski resorts to EPR and OZRE for 8.9 times EBITDA.

There's much, much more interesting information in Blevins' breakdown, which you can read here.