Aspen Skiing Co. and KSL Partners on Monday acquired Intrawest Resorts for US$1.5 billion, giving the partnership control of Steamboat and Winter Park ski areas in Colorado. The deal also included Quebec’s Tremblant, Ontario’s Blue Mountain, West Virginia’s Snowshoe and Vermont’s Stratton ski areas, as well as heliskiing company Canadian Mountain Holidays.
Aspen Skiing currently has four hills in Colorado and KSL adds to its Squaw Valley – Alpine Meadows ski resort in California. The new deal also sets up a bigger rivalry with Vail Resorts, which recently spent US$1.1 billion for three-quarters of Canada’s Whistler Blackcomb ski area and US$50 million for Vermont’s Stowe resort.
Under the terms of the merger agreement, Intrawest stockholders will receive US$23.75 in cash for each share of Intrawest common stock (roughly 40% more than the company’s US$17 share price in mid-January), representing a total valuation of approximately US$1.5 billion, including debt obligations to be assumed or refinanced net of cash at closing.
Intrawest has been for sale since last year by its previous owner, New York hedge Fortress Investment Group. Japanese telecom and energy giant SoftBank Group Corp. in February acquired Fortress in a US$3.3 billion deal.
“We are excited to work with Aspen and KSL,” said Thomas Marano, Intrawest’s chief executive officer. “Our new partners bring additional financial resources and a shared passion for the mountains and our mountain communities. Both Aspen and KSL are committed to helping Intrawest accelerate our plans to bring more value to our guests, more opportunities for our employees and more investment into our local communities.”