Vail Resorts Buys Park City Mountain Resort

(RTTNews) - Vail Resorts, Inc. (MTN) said Thursday that it has acquired Park City Mountain Resort from Powdr Corp. for $182.5 million in cash, subject to certain post-closing adjustments. The acquisition includes all of the assets of Greater Park City Co., the land used for ski terrain at the resort held by Ian Cumming, and certain base parking lands owned by Powdr Development Corp., which have approved zoning for about 687,000 square feet of residential and commercial development. The acquisition does not include the Gorgoza tubing operation, located about 10 miles from the resort, which will be retained by Powdr Corp.

With the acquisition, all aspects of the previously disclosed litigation with respect to Park City Mountain Resort have been settled and the dispute will no longer pose any future threat to disrupt the operation of the resort.

Blaise Carrig, president of Vail Resorts, will act as interim chief operating officer for the resort.

Vail Resorts said that due to the acquisition of Park City Mountain Resort, it expects $35 million in incremental EBITDA in Fiscal Year 2015, excluding any transaction and transition costs. The company anticipates additional contributions from the acquisition in future years, particularly after it can connect the experience of the two resorts together. The company expects the acquisition to provide significant tax benefits over the next 15 years, including an average of about $12 million in additional annual taxable depreciation and amortization expense through Fiscal 2021.