Vail Resorts Strikes Deal For Swiss Ski Haven: Adding Crans-Montana To Its Global Portfolio

Vail Resorts Inc MTN has entered into an agreement to acquire Crans-Montana Mountain Resort in Switzerland from CPI Property Group (CPIPG). 

Crans-Montana Mountain Resort spans over 1,400 meters (about 4,593 ft) of skiable vertical terrain, and 140 kilometers (approximately 87 mi) of trails.

The resort is located in the Valais canton of Switzerland, approximately two and a half hours from Geneva and less than four hours from Milan and Zurich. It is accessible from five airports and by train.

The resort is two and a half hours away from Vail’s other owned and operated European resort in Andermatt-Sedrun.

Crans-Montana is known for events, including the Ski World Cup, Mountain Bike World Cup, Omega European Masters, and other championships.

Vail Resorts is acquiring an 84% stake in Remontées Mécaniques Crans Montana Aminona (CMA) SA, which controls and operates all the resort's lifts and supporting mountain operations.

The company is also taking a 80% ownership stake in SportLife AG, which operates one of the ski schools located at the resort, and a 100% stake in 11 restaurants located on and around the mountain.

The valuation for the resort operations is expected to be CHF 118.5 million and Vail expects the resort to make about CHF 5 million of EBITDA in its fiscal year ending July 31, 2025, the first full year of operations following the expected closing later in fiscal 2024.

The transaction is expected to close during the 2023-24 ski and ride season. Vail held $562.9 million in cash and equivalents as of July 1, 2023.

Price Action: MTN shares closed lower by 0.49% at $215.22 on Wednesday.

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