Alterra to purchase Arapahoe Basin

Arapahoe Basin

Alterra Mountain Company has entered into an agreement to purchase Arapahoe Basin from Dream Unlimited Corp. A-Basin will be Alterra’s 18th North American mountain destination.

Toronto-based Dream Unlimited—a multi-billion-dollar real estate development, asset management, and private equity firm—acquired A-Basin in 1997 and has since made a bevy of capital investments, including the replacement of every lift and most of the buildings as well as more than tripling the skiable terrain from 460 to 1,428 acres with notable terrain and lift expansions into Montezuma Bowl, The Beavers, and The Steep Gullies. Since 1997, skier visits increased from less than 200,000 to about 600,000.

“From its unparalleled terrain to its commitment to sustainability, A-Basin has a team that has a passion and commitment for this unique place and its traditions, making it an ideal fit for the Alterra Mountain Company family,” said Alterra president and CEO Jared Smith. “A-Basin was a key addition to the Ikon Pass in 2019, and we have since then worked alongside their dedicated team and look forward to continuing our shared goals and values.”

A-Basin chief operating officer Alan Henceroth, who has been with the resort for 36 years, will continue in his role overseeing daily operations and leading future capital improvement plans, which include expanded parking and snowmaking.

“A-Basin has a long-time and loyal following among skiers and riders in Colorado, and we care deeply about the culture of A-Basin that brings them back,” said Henceroth. “[W]e have every faith that Alterra is committed to helping us maintain A-Basin’s authenticity.”

The transaction is expected to close sometime in 2024, subject to certain closing conditions, including regulatory approvals. While the details of the transaction were not disclosed, a press release from Dream Unlimited announcing the sale said, “Based on today’s exchange rate and internal estimates of taxes payable, management believes this sale will result in after-tax profit of $110 million before closing costs and adjustments.”

KSL Capital Partners, which jointly-owns Alterra Mountain Company with an affiliate of Henry Crown & Company, closed a “single-asset continuation vehicle” for Alterra in late January, with total commitments of more than $3 billion.

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Source: SAM