Vail Resorts To Acquire 55% Stake In Swiss Resort Andermatt-Sedrun Sport

Vail Resorts Inc MTN has agreed to acquire a majority stake in Andermatt-Sedrun Sport AG from Andermatt Swiss Alps AG (ASA).
Andermatt-Sedrun is a destination ski resort in Central Switzerland.
The company is acquiring a 55% ownership stake in Andermatt-Sedrun, and ASA will retain a 40% ownership stake.
Vail will make a CHF 149 million investment, comprised of CHF 110 million for use in capital investments in the resort and CHF 39 million to be paid to ASA and fully reinvested into the real estate developments in the base area.
The pre-investment valuation for the full resort is expected to be CHF 215 million, including CHF 54 million of debt that will remain in place.
"Entering the European ski market has been a long-term strategic priority for Vail Resorts," said CEO Kirsten Lynch.
The deal is expected to be completed prior to the 2022-23 ski and ride season.
Vail Resorts' representative will assume the chair of the Board of Directors of Andermatt-Sedrun, and ASA will appoint the vice-chair.
Price Action: MTN shares closed lower by 0.12% at $258.32 on Friday.