Colorado-based mountain resort conglomerate Vail Resorts (NYSE:MTN) has acquired Whistler Blackcomb (TSX:WB) in a $1.4 billion deal that sent Whistler Blackcomb's share price up 45%.
The friendly takeover announced this morning will make Vail Resorts Whistler Blackcomb’s sole shareholder.
Shareholders will be compensated with $676 million in cash and $715 million in Vail Resorts’ stock. After the transaction closes, Whistler Blackcomb shareholders will collectively own just under 20 million, or 10%, of Vail Resorts shares.
Whistler Blackcomb was featured prominently during Vancouver’s 2010 Olympic Games as the official alpine skiing venue. It's one of the world’s most visited ski resorts and one of Canada’s highest-profile skiing destinations.
Vail Resorts’ chairman and CEO, Rob Katz, was excited about the opportunity to add the world famous B.C. resort to the company’s assets. But he also said he saw the need to preserve the resort’s unique identity.
“Together we will build upon the guest experience at Whistler Blackcomb while preserving the unique brand and character of the resort as an iconic Canadian destination,” Katz said in a press release.
Whistler Blackcomb CEO Dave Brownlie said the deal would help provide resources for the company’s ambitious growth plan. According to Brownlie, the deal would also increase the company’s financial strength, marketing exposure and guest relationships.
The deal, which is expected to be finalized in the fall, received popular voting support among shareholders but still needs to receive customary closing approval from shareholders and regulators.
As part of the deal, Brownlie will stay on as Whistler Blackcomb’s CEO and will nominate one member to the Vail Resorts board of directors.
Vail Resorts owns 11 ski resorts in the U.S. and one in Australia.
Whistler Blackcomb shares were hovering at around $36.45 after the deal was announced. Shares had been hitting all-time highs in recent months in part because the company had been posting its strongest-ever revenue growth. The company has also been involved in innovative events to raise its profile.
