Peak Resorts Buys Mount Snow, Attitash

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Publish Date

02/16/2007

SAM Magazine-Park City, Utah, Feb. 16, 2007-Following weeks of speculation, Peak Resorts has entered a purchase agreement for Mount Snow and Attitash with American Skiing Company for $73.5 million. When completed, the deal will leave Peaks with 11 resorts in Missouri, Indiana, Pennsylvania, New Hampshire, Vermont, and Ohio. The agreement comes on the heels of the planned $265 million Intrawest purchase of Steamboat resort from ASC.

"We're very excited about this acquisition. We feel it's a great fit for us," said Peak Resorts president Tim Boyd. "We've always been fans of Mount Snow. We've had our eye on it for a long time." Peaks excels in running day areas that require top-notch snowmaking, and "Mount Snow is the only Vermont area you could classify as a day area," he said. "We feel our M.O. of making snow can make an impact there. That's our ultimate goal.

"Attitash is not quite the typical day area we're used to," Boyd admitted. "But the weakness at both these areas was their snowmaking, and that's our greatest strength."

ASC president and CEO B.J. Fair said, "We've worked very hard to ensure that the full potential and value of each of our resorts is realized. Under the existing circumstances and market conditions, this means contemplating the sale of certain of our resort assets, as we've planned with Steamboat and now Mount Snow and Attitash."

The sale includes the commercial cores of the Grand Summit Hotels located at both resorts. The total cash purchase price of $73.5 million for both resorts is subject to working capital and seasonal earnings adjustments. In addition, the buyer will assume approximately $2 million in debt and other liabilities.

As a condition of the purchase and sale agreement, ASC stockholder approval is required for the sale of the resorts. The sole holder of ASC's Preferred Stock Series C-1, representing 65.8 percent of the voting shares entitled to vote on the matter, has voted in favor of the transaction, which constitutes majority stockholder approval. Such approval means the transaction may be approved without a meeting of the company's stockholders. The stockholder approval will not be effective until 20 days have elapsed following mailing of the information statement to stockholders.

In addition to stockholder approval, the transaction is subject to customary closing conditions, including Hart-Scott-Rodino antitrust approval and consent of the U.S. Forest Service.

Comments

Mgrs are not Vermonters

I know for a fact the the MD @ Snow is not a VTer so ski bum you should check your facts.

Skier

Congrats to Peak Resorts on the new additions to an already impressive company. I grew up in St Louis and learned to ski at Peak owned areas. Mark PA, u need to grow up and move on. Whatever your deal is with JFBB, either get over it or man up and confront whoever you have the beef with. But I can tell you lack the required "equipment" to have a face to face with anyone. Lets keep this forum to what it should be; about the sale of the two new mountains.

skier visits

Yeah I read the sec filings. The only resorts that had more visits than The Can last year were Steamboat, Killington, and Sunday River. They can lie to the sec though. Every employee going up in the mournings gets their pass scanned. I wonder if they get included in the skier visits? Good way to inflate numbers and increase bonuses. Everyone is correct on the money that got wasted at the canyons. Both our "new" lodges got built in the middle of winter and went extremely over budget. Who builds on a ski area in the winter? You could see daylight through the roof of the main lodge it's first year. I just hope the new owners of all the places go back to being ski area operators. Not real estate developers. I wish you all good luck and good skiing in the future.

Hey Gb not all of them

Hey Gb not all of them but good call on Mr. Carey and friends. How much were the new chair lifts at the Canyons? Oh, yea and that hotel! How much $$$ did the marketing boys claim they spent on improvements? Well it had to come from somewhere and it didn't come from Utah. Not that many skier visits. Who told me? Do you read the ASC annual reports? Can't lie to the SEC gb.

where did the money go?

Hey skibum58. Those ASC punks you refer to all came from your neck of the woods. Maine, Vermont, etc. First thing Blaise Carrig said when he got to the Canyons."We're going to change the face of skiing in the west." Well, they changed a lot and not much of it was good. Who is telling you people they spent all the money at The Canyons? It's still band-aids and bubble gum holding this place together. All the money has went to corporate yahoos and Chip Carey's over blown and mostly useless marketing budget. Marketing and shoddy real estate doesn't sell lift tickets. SNOW does. Utah will still have that long after ASC is gone.

mount snow has a great team

Hey me! Don't sell out the mount snow senior management team. First of all they're are Vermonter's. How about a little compassion for that! Secondly, They have done so much with so little. It's ASC that's to blame, those punks from Utah! The current team is dedicated, intelligent, and has a stake in the area. They have raised their families here and have worked very hard to keep Mount Snow in the top five in New England. Let's not forget the new guys are just that, new to the area, and new to a mountain this size. The current team can do a lot of good through the transition. Why are you so bitter! If you don't like it here don't ski here!

Finally

I'm glad to see Peak Resorts coming in. It is certainly time for some updating and a culture change at Mount Snow. ASC has been pretty hands off except when they took all of the revenue from Mount Snow to use for The Canyons and debt repayment. The first order of business should certainly be to review all of the senior management and send most of them on their way. I don't think I've ever seen such a dysfunctional group of people.
I think things can only improve from here.

over all a good job.

Peak Resort is our main competition. Although i dont agree with some of there business tatics & the way they treat there employees, they seem to be doing something right. I am not sure if i would be worried about them sending "little Boyd" to run it, I would be more worried about them send a "little Grenier" to run it. But, in the end it does not matter who runs it...its ran from St. Louis.

Mark was FIRED!!

Yes corkygrl, MarkPA, a.k.a. Mark Hurley, was fired for poor wrok performance at JFBB during the first week JFBB was open. His current attitude towards Peak Resorts was then, as now, a direct reflection of what Peak Resorts does not want to have as a representation of their employees. He borders along the lines of slander at every chance he gets. JFBB now has a HUGE roster of very happy employees and all of the inadequate employess have been sucessfully weeded out by the Boyds. Customer compliments are at an all time high! Complaints are at an all time low! Mark's mom should have taught him to keep his mouth shut if he doesn't have anything nice to say. The customers say it all for Peak Resorts and that's the only voice that matters.
Welcome Mount Snow and Attitash to the Peak Family. Graet things are coming your way!!!!

LiftOp

Ninja boy.. Theft of service is one thing. Yes, it is morally wrong and illegal. Detaining children in your parking lot, putthing their faces in the mud and kicking them is another story. The management at jfbb has no class and clearly they think its OK to use force to achieve the respect of their customers when traditional methods don't work. There were many many witnesses that night that saw jfbb employee acting like B-rate security guards and the mtn manager and GM were the main offenders. I don't care what you say, how often you say it, the place has no class.

Be a positive change

Congrats to the new owners. Mt. Snow has big potential. Have fun with it. Base area should be first priortiy, water for snowmaking and new maintenace facilty.

LiftOp

Clearly alot of these posts are of the damage control variety by jfbb. I know for FACT that the majority of the employees are fed up with the childish antics, immaturity and poor business decisions that go on at JFBB. In fact both the mtn manager and gm were involved in an altercation with patrons without lift tickets where they proceeded to follow kids to the parking lot, forcible removed minors from their vehicles and these kids were all restrained against there will in the muddy parking lost. Parents were outraged and civil cases are pending. this is merely ONE factual and prime example of the type of management at jfbb with the GM participating and condoning the actions.

Ohhh boooy....

Oh boy... Mount Snow take caution! For your sake, you better hope Peak Resorts doesn't send the little "Boyd" to your resort! Start getting those resume's ready, your not gonna like what you see if they send Jesse and Jessica! I feel for you!

instructor

Peak Resorts has some link or arrangement with SMI hence the "expertise" with snowmaking. Mt. Snow and Attitash will become a sanctuary for polecats.
I'm told the resorts are separately run. Pocono is correct though if they bring an outsider in to run the places its unlikely the person will have any knowledge of the ski industry. Get ready for bland midwest-chic marketing. Welcome to Missouri East...

MGR

I agree, I have had a lot of dealings with Peak Resorts from the supplier side and have always found them to be informed,fair and approachable. All of their area managers are hands on. Are you saying we couldn't learn somthing from the Mid-west ?

Liftop

I worked with Jesse at 2 different resorts and at face value seems genuine. But let it be known that he is too young, too immature and does not have the experience to run a "REAL" resort the likes of Mount Snow. Right now he is running JFBB and has turned both places upside down. Employee morale is at its lowest, there is zero marketing prowess and aside from the initial snowmaking investment by Peak, MANY people both employees and guests wish that Peak was not running these resorts. A clear case of too much too soon and Jesse is the captain of this sinking ship.

Thank You Peak

I have had nothing but great experiences with Peak Resorts. I have visited a handful of their resorts and all have been top notch. I think everything that has gone on at JFBB has been positive and for the greater good of the two areas. I happen to know for a fact that JFBB is having one of their best years ever. Not to mention that the overall employee morale is great. Every employee I have spoken with says that Blue Ridge never did anything for them or the mountains. They all express appreciation for the investments, both monetarily and personally, that Peak has made to making JFBB a success for many years. Compliments are up. Complaints are down. Kudos to Jesse. He may be young, but he is extremely knowledgable and experienced. Thanks for improving the mountains that I love!

Publisher

Hey guys--I often love the threads we have in here as they are intelligent and insightful. I would ask, however, that we keep dissection of personalities to a minimum. The industry is seeing some big changes and let's keep the discussion pointed in that direction...so let the discussions continue!

Time for a change

As a frequent skier at Attitash, I (and many others) look forward to new management at the mountain. It has been obvious for the last couple of years the American Ski Co. had no interest in making improvements. It is a great mountain with lots of potential and a large loyal following. Best of luck to the new owners.

Discussion is great

All,

While I agree that this industry is too small for personal attacks on individuals, this has been a great discussion of the issue. I believe more posts are on this thread than on the total of all other SAM posts in 2006. So, I would encourage this lively debate because if it doesn't happen here, where will it happen online? But leaving individuals out is a good call.

Anonymous

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