Vail Resorts Completes Acquisition of Stowe Mountain Resort
SAM Magazine—Broomfield, Colo., June 9, 2017—Vail Resorts closed on its acquisition of Stowe Mountain Resort in Vermont on Wednesday. Stowe, VR’s first East Coast property, is also now included on the company’s $859 Epic Pass for the 2017-18 winter season.
Vail Resorts acquired Stowe from Mt. Mansfield Company, Inc., a wholly owned subsidiary of American International Group, Inc. (AIG). The original purchase price of $50 million was reduced to $41 million after adjustments for certain agreed upon terms, including a reduction in the price by the amount that the resort’s EBITDA exceeded capital expenditures for the period from Nov. 1, 2016 through closing. The resort is expected to generate incremental annual resort reported EBITDA in excess of $5 million during its first 12 months of operation following the acquisition.
As part of the transaction, Vail Resorts acquired all of the assets related to the mountain operations of the resort, including base area skier services (food and beverage, retail and rental, lift ticket offices, and ski and snowboard school facilities) at Mount Mansfield and Spruce Peak.