Today, Vail Resorts announced that they have officially purchased Park City Mountain Resort for $182.5 million, despite Tuesday’s announcement which stated that Park City would pay a $17.5 million bond to keep the resort running for a 51st straight season.
With this acquisition of land, Vail intends to connect PCMR and Canyons for the 2015-2016 ski season to create the largest single ski resort in the United States with 7,000 skiable acres, subject to regulatory approvals.
Rob Katz, chairman and chief executive officer of Vail Resorts stated the following regarding the new addition:
“First and foremost, we are very pleased to bring a permanent end to this dispute and provide assurance to the guests and employees of PCMR, and to everyone in the Park City community, that they no longer have to worry about any disruption to the operation of the Resort. This has been a difficult period for everyone involved and I commend John Cumming and Powdr Corp. for helping to find a solution to this situation,”
Since 2011, Powdr Corporation (Park City’s parent company) and Vail Resorts have been under a long legal battle over the land after PCMR failed to renew their lease during the spring. Now, three years later, both parties will be able to walk away from the dreaded dispute.
Blaise Carrig, president of Vail Resorts, will act as interim chief operating officer for the resort.
“We understand that this acquisition represents a change for all of the employees of PCMR and I look forward to working with everyone on the PCMR team as we develop a vision for the future of the resort,” said Carrig.
With the new purchase, Vail acquires all of the assets of Greater Park City Company (GPCC), the land used for ski terrain at the resort held by Ian Cumming, and certain base parking lands owned by Powdr Development Corp., which have approved zoning for approximately 687,000 square feet of residential and commercial development. The acquisition does not include the Gorgoza tubing operation, located approximately 10 miles from the resort, which will be retained by Powdr Corp.
With that, Vail announced that they will be including Park City in their Epic Pass deal for the 2014-2015 season.
“Park City Mountain Resort is one of the most spectacular mountain resorts and iconic brands in the ski industry and I am proud to have the resort become a part of Vail Resorts. The acquisition will allow us to immediately bring Park City Mountain Resort onto the Epic Pass, which will now offer skiers from across the country and around the world access to 22 resorts, including Canyons in Park City, Utah; Vail, Beaver Creek, Breckenridge and Keystone in Colorado; and Heavenly, Northstar and Kirkwood in Tahoe.
“We look forward to working collaboratively with the entire Park City community, as well as city and county officials, as we chart the future for the resort, including how we can best bring the Canyons and Park City ski experiences together to create the largest mountain resort in the United States,” Katz added.
As for the 2014-2015 ski season, Park City Mountain Resort and Canyons will remain separate, though Vail’s Epic Pass and Epic Local Pass will include PCMR, and PCMR passes will be honored, and can be exchanged or upgraded for a season pass that will also be valid at Canyons.
It was also announced that due to the acquisition of PCMR, it expects $35 million in incremental EBITDA in Fiscal Year 2015, excluding any transaction and transition costs. The Company anticipates additional contributions from the acquisition in future years, particularly after it can connect the experience of the two resorts together. The Company expects the acquisition to provide significant tax benefits over the next 15 years, including an average of approximately $12 million in additional annual taxable depreciation and amortization expense through Fiscal 2021.