Vail Resorts Acquire Park City Mountain For $182.5 Million

Posted By: Emily Bates on September 11, 2014 12:01 pm

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.

Park City Mountain Resort- Vail Buys Park City

Park City Mountain Resort will be included in the Epic Pass deal with 22 of the most iconic mountains and more than 32,000 acres of skiing and riding. Photo: Park City Mountain Resort

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.

Vail Buys Park City

Residents of Park City and winter travelers will no longer need to worry about Park City Mountain Resort being open this season. Photo: Park City Mountain Resort

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.

epic pass, park city

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.

Vail buys Park City

The Company will be making additional comments on PCMR and the outlook in its 2014 fiscal year-end investor conference call on Sept. 24th. Photo: Park City Mountain Resort

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. 

Emily Bates ( More Posts)

As a college graduate from California State University, Long Beach, Emily enters the world with a Bachelor's Degree in Recreation and Leisure Studies and a passion for surfing, cultural diversity and serving others.


Comments