Intrawest Resorts Holdings, Inc., which has held a 50 percent ownership in Blue Mountain since 1999, has entered into a definitive agreement to acquire the 50% interest in Blue Mountain Ski Resort that has been held by Blue Mountain Resorts Holdings Inc., for C$58 million. The resort has been operating as a joint venture between the two companies.
Intrawest does not anticipate significant changes to operations or resort personnel.
“With this accretive acquisition we move into the next phase of growth for Intrawest, as this transaction consolidates our ownership of the premier mountain resort in Ontario and provides us with greater opportunities to expand our multi-mountain pass offerings and cross-resort strategies to add value to our guests,” said Bill Jensen, CEO, Intrawest.
“As a non-controlling owner we have received minimal cash distributions from Blue in the past, and we expect this consolidation will result in significant incremental positive cash flow to Intrawest,” Jensen added. “In addition, this transaction will increase the company’s economies of scale by providing greater operational leverage and opportunities for synergies through the sharing of best practices between Blue and our other resorts.”
Jensen praised Blue Mountain founder Jozo Weider and the entire Weider family “for their contribution to the sport of skiing, the community, and the Province.” He added, “On behalf of Intrawest, I would like to thank Gord Canning, chairman and chief executive officer of Blue Mountain, for his leadership and commitment to that vision.”
Blue is the largest and most popular ski resort in Ontario. Summer amenities include an 18-hole golf course, mountain coaster, open-air gondola, mountain biking facility, and waterfront park, among other attractions.
The purchase price was based on a C$5 million partial payment for growth capital expenditures related to a recently completed conference center, and approximately seven times fiscal 2014 EBITDA. Intrawest will finance this acquisition through incremental term loan proceeds and existing cash. The transaction is expected to close by the end of September 2014.