STOWE, Vt.
Vail Resorts, Inc. announced it has entered an agreement to acquire assets related to the mountain operations of Stowe Mountain Resort from Mt. Mansfield Company, Inc. (MMC), a wholly owned subsidiary of American International Group, Inc. (AIG), for a purchase price of $50 million, subject to certain adjustments.
Stowe Mountain Resort will be Vail Resorts' first mountain resort on the East Coast and complements the company's network of 10 mountain resorts and three urban ski areas.
Upon completion of the acquisition, Vail Resorts' assets will include operations of base area skier services at Mount Mansfield and Spruce Peak. Other facilities such as the Stowe Mountain Lodge, Stowe Mountain Club, Stowe Country Club and certain real estate owned and held for future development will be retained by MMC.
"We're thrilled to add Stowe Mountain Resort to our family of world-class mountain resorts,” said Rob Katz, chairman and CEO of Vail Resorts. “With the investments in both mountain infrastructure and base area facilities that AIG has made over the years, Stowe Mountain Resort has become the premier, high-end resort for East Coast skiers and snowboarders. We look forward to working with AIG to continue enhancing the [resort].”
As previously mentioned, MMC will retain ownership of the renowned Stowe Mountain Lodge at Stowe Mountain Resort, a 312-room hotel and spa that has already been recognized as one of the greenest and most luxurious mountainside hotels in the world, and additional slope-side real estate opportunities.
Stowe Mountain Resort offers 56,000 square feet of event space at its alpine village at Spruce Peak.
This transaction is subject to Vermont administrative review. At closing, the purchase price will be adjusted for certain agreed upon terms, including a reduction (or increase) in the price by the amount that the resort's EBITDA exceeds capital expenditures for the period from Nov. 1, 2016, through closing.
Vail Resorts also revealed plans to integrate Stowe Mountain Resort into its Epic Pass and other season pass products for the 2017-18 winter season, subject to the acquisition closing.
The headline for an earlier version of this article incorrectly stated "Vail Resorts to Acquire First East Coast Hotel," but in actuality MMC will retain ownership of Stowe Mountain Lodge at Stowe Mountain Resort. Vail Resorts plans to acquire the mountain operations of Stowe Mountain Resort, including base skier areas at Mount Mansfield and Spruce Peak.
