Intrawest pays US$265M for Steamboat Ski and Resort Corp. of Colorado

Resort company Intrawest ULC dipped into its new owners’ deep pockets Tuesday and signed a deal to buy Colorado-based Steamboat Ski and Resort Corp. for US$265 million. 

Alex Wasilov, president and chief operating officer at Intrawest, said the acquisition marked a resurgence in the company’s strategy to grow through acquisitions.

 

“Whenever a property like Steamboat comes on the market, if you’re in the business, you have to take a serious look at it,” Wasilov said in an interview.

 

“Certainly with the acquisition of Fortress and access to their capital made it a lot easier to participate and put us in a better position to have the winning bid.”

 

Access to new capital for acquisitions and growth was a key benefit identified by Intrawest earlier this year in its deal to be taken over by U.S. private-equity firm Fortress Investment Group for US$2.76 billion.

 

Best known for its Whistler-Blackcomb ski resort north of Vancouver, Intrawest has said it is looking at both ski resorts and warm-weather locations as potential acquisitions as it seeks to cash in on an aging population looking for holiday destinations.

 

Steamboat, one of the busiest ski resorts in the U.S., began operating in 1963 and includes access to six peaks with 164 trails, 20 lifts and a vertical rise of 1,100 metres.

 

Under the deal with American Skiing Co., Intrawest will acquire the resort and all its operations, along with the commercial core of the Steamboat Grand Hotel and Condominiums and an interest in the Walton Pond Apartments complex.

 

“There is some developable land that comes with the acquisition which we will certainly try to take advantage of, but this to a large degree is buying a ski mountain operation and helping the town and community evolve in such a manner that attracts more people to the mountain,” Wasilov said.

 

“I think it is all about building a more dynamic and robust ski business on top of a wonderful business that already exists.”

 

The purchase price of $265 million includes $4 million in assumed debt and is subject to working capital and seasonal earnings adjustments. The deal is expected to close by the end of the ski season.

 

American Skiing, which also owns resorts at Killington, Vt., and Sugarloaf/USA in Maine, announced plans to sell the Steamboat Springs resort in July, citing favourable market conditions.

 

“At the end of the day, it’s a transaction that is the right thing to do for American Skiing Co. and creates a tremendous amount of value for us,” B.J. Fair, CEO of American Skiing, told The Associated Press.

 

American Skiing said it will use proceeds from the sale to reduce debt.
 

 

SOURCE money.canoe.ca