Vail Resorts (owner of Breckenridge Ski Resort) on Tuesday announced that last Friday, it entered an agreement to acquire Stowe Mountain Resort from Mt. Mansfield Company, Inc., a wholly owned subsidiary of American International Group, Inc., for a purchase price of $50 million.
Stowe Mountain Resort will be Vail Resorts' first mountain resort on the East Coast and adds to the company's network of 10 mountain resorts and three urban ski areas.
Vail Resorts is acquiring all of the assets related to the mountain operations of the resort, including base area skier services (food and beverage, retail and rental, lift ticket offices and ski and snowboard school facilities) at Mount Mansfield and Spruce Peak. Other facilities such as the Stowe Mountain Lodge, Stowe Mountain Club, Stowe Country Club and some real estate will be retained by Mt. Mansfield Company.
"We're thrilled to add Stowe Mountain Resort to our family of world-class mountain 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 guest experience and to ensure the resort's long-term success," said Rob Katz, chairman and chief executive officer of Vail Resorts.
Douglas Tymins, president and chief executive officer of AIG Global Real Estate, said, "Under Vail Resorts' management, Stowe's reputation as a premier ski destination with a commitment to excellent service will continue to grow. AIGGRE is looking forward to combining Vail Resorts' tremendous mountain operations capabilities with our continued commitment to the development of the Spruce Peak community."
Stowe Mountain Resort is expected to generate incremental annual EBITDA in excess of $5 million in Vail Resorts' fiscal year ending July 31, 2018.
Operations at the resort for the remainder of the 2016-17 ski season will continue in the ordinary course as will future summer and winter seasonal hiring. Vail Resorts said it will be retaining the vast majority of the resort's year-round staff.
Vail Resorts will integrate Stowe Mountain Resort into its Epic Pass and other season pass products for the 2017-18 winter season, subject to the closing. With the Epic Pass, skiers and snowboarders will have unlimited access at Stowe as well as Vail, Beaver Creek, Breckenridge and Keystone in Colorado; Park City in Utah; Heavenly, Northstar and Kirkwood in Tahoe; and Whistler Blackcomb in British Columbia, Canada.