DENVER, CO – Intrawest Resorts Holdings, Inc. (NYSE:SNOW), a leading North American mountain resort and adventure company, today announced that it has negotiated and entered into a definitive agreement to acquire the 50% interest in Blue Mountain Ski Resort (“Blue”) that it does not already own from Blue Mountain Resorts Holdings Inc. for CAD $58.0 million.
“With this accretive acquisition we move into the next phase of growth for Intrawest as this transaction consolidates our ownership of the premier mountain resort in Ontario and provides us with greater opportunities to expand our multi-mountain pass offerings and cross-resort strategies to add value to our guests,” said Bill Jensen, CEO, Intrawest. “As a non-controlling owner we have received minimal cash distributions from Blue in the past and we expect this consolidation will result in significant incremental positive cash flow to Intrawest. In addition, this transaction will increase the Company’s economies of scale by providing greater operational leverage and opportunities for synergies through the sharing of best practices between Blue and our other resorts.”
“While Intrawest has been a partner at Blue Mountain since 1999, it is important to acknowledge founder Jozo Weider and the entire Weider Family for their contribution to the sport of skiing, the community, and the Province,” Bill continued. “Blue Mountain is a wonderful legacy to Jozo Weider’s vision and passion for our sport. On behalf of Intrawest I would like to thank Gord Canning, Chairman and Chief Executive Officer of Blue Mountain, for his leadership and commitment to that vision.”
Blue is the largest and most popular ski resort in Ontario, Canada and is conveniently located approximately 90 miles northwest of the Greater Toronto area’s approximately 5.6 million residents. The resort, which services approximately 360 skiable acres with 14 lifts and snowmaking on 93% of trails, also offers a wide range of summer amenities, including an 18-hole golf course, mountain coaster, open-air gondola, mountain biking facility, waterfront park and other summer attractions. For more information, visit www.bluemountain.ca.
The purchase price was based on a CAD $5.0 million partial payment for growth capital expenditures related to a recently completed conference center and approximately seven times fiscal 2014 EBITDA, excluding any potential synergies. The Company will finance this acquisition through incremental term loan proceeds and existing cash. The transaction is expected to close by the end of September 2014.
Intrawest acquired a 50% interest in Blue in 1999 and since that time the resort has been operated as a joint venture between the Company and Blue Mountain Resorts Holdings Inc. Intrawest does not currently anticipate making significant changes to the operations or resort personnel.
Bank of America Merrill Lynch has committed to provide debt financing to support the transaction and Blake, Cassels & Graydon LLP provided legal counsel to the Company.