Intrawest being acquired by Aspen

[WJenness]

(Some) Details here: http://www.reuters.com/article/us-intrawest-resort-m-a-aspen-skiing-idUSKBN17C15C

Response to Vail's expansion into the East?

On the lift at Stratton a few weeks ago, I overheard someone saying that the folks from Vail had been poking their head around the resort...

Maybe they were? Maybe they meant Aspen?

Either way, going to be interesting.

-w

 

[Pez]

Back in Feb I also talked to folks on the chair who said Vail might be buying Stratton. Interesting for sure.

 

[xlr8r]

Aspen and KSL which owns Squaw Alpine. This came out of left field as I there have been separate rumors of Vail looking at buying Stratton and Squaw Alpine. Its probably too late to change the season pass offerings for next year, but this will surely shake up the passes for 2018/2019, as Aspen and Squaw Alpine are Mountain Collective and Intrawest is MAX pass.

Its interesting how every ten years or so the ownership of major mountains in the east gets shaken up in a short time span. In 95/96 it was LBO buying up mountains until the formation of ASC, and Booth Creek buying up 3 mountains in NH. In 07/08 it was Peaks, Boyne, and Powdr buying up the ASC mountains plus Loon, and then CNL coming in. And this year it has so far been Vail buying Stowe, Aspen and KSL buying Intrawest, and CNL mountains getting sold to Och-Ziff.

 

[xwhaler]

If Stratton could get on the Mtn Collective that would be a nice addition. Give 2 EC options to pair with western trips.

 

[Jully]

Makes me worry about the Max Pass. There's no chance of the Intrawest Mountains being removed from the pass this year, right? I'm still toying with the idea of the pass, but if I did it I would go to WP, Steamboat, and Tremblant almost certainly. Without those the pass isn't as attractive for me.

 

[WJenness]

<Puts on my "I am not a lawyer, I just married one." T-shirt>

I can't imagine them being removed at this point. The article mentions that Aspen is buying Intrawest's debt as well, so I'm guessing they are purchasing all of their liabilities, which would include contractual obligations under the Max Pass agreement.

However, I wouldn't be surprised if this is the last year they are on the pass.

In fact, it may be a sink or swim moment for the whole Max Pass concept. Only time will tell.

 

[KustyTheKlown]

i'd be really bummed if max pass ceases to be.

 

[Jully]

<Puts on my "I am not a lawyer, I just married one." T-shirt>

I can't imagine them being removed at this point. The article mentions that Aspen is buying Intrawest's debt as well, so I'm guessing they are purchasing all of their liabilities, which would include contractual obligations under the Max Pass agreement.

However, I wouldn't be surprised if this is the last year they are on the pass.

In fact, it may be a sink or swim moment for the whole Max Pass concept. Only time will tell.

I wouldn't think that would be the case either... but just wanted to make sure. Either way I have until May 1 to keep my ears tuned for any fallout and discussion of what Aspen will do.

i'd be really bummed if max pass ceases to be.

While the loss of Intrawest would stink for the Max Pass, I don't think it would be the end for the pass. I would think Aspen would look at the money Intrawest makes from Max and the money it thinks it can make from the MC and hopefully make a decision. I truly wonder what is more profitable.

My guess would be Max. MC just seems too boutique to actually pull in a lot of money.

 

[KustyTheKlown]

yea, especially with tremblant and stratton being such core resorts close to major population centers. the mountain collective places seem to be somewhat remote destination resorts (which, admittedly, is what steamboat is), not places people from the cities go for day tripping. i know max has gotten me out to tremblant for multi day trips the past 2 years, and stratton was added to my day trip roster when before it wasn't. i'd hope there are a lot of mes out there which make the max pass the right decision for aspen/intra

 

[xwhaler]

They have a page up addressing some of these pass concerns for next season at least

[h=4]For the full 2017-18 winter season, all resorts involved in the transaction will honor their existing pass products currently on sale, including the Mountain Collective, the Rocky Mountain Super Pass + and the M.A.X. Pass.[/h]
https://www.aspensnowmass.com/inside-aspen-snowmass/stories/better-together

 

[Jully]

They have a page up addressing some of these pass concerns for next season at least

[h=4]For the full 2017-18 winter season, all resorts involved in the transaction will honor their existing pass products currently on sale, including the Mountain Collective, the Rocky Mountain Super Pass + and the M.A.X. Pass.[/h]
https://www.aspensnowmass.com/inside-aspen-snowmass/stories/better-together

Good to know for next year! In their FAQ they sidestep any mention of the future of MC or MAX. Guess we will have to wait for that one...

 

[BenedictGomez]

The article mentions that Aspen is buying Intrawest's debt as well, so I'm guessing they are purchasing all of their liabilities, which would include contractual obligations under the Max Pass agreement.

When you purchase a company, you need to absorb all of their outstanding liabilities as well (for better or for worse).

 

[WJenness]

When you purchase a company, you need to absorb all of their outstanding liabilities as well (for better or for worse).

It's all how you structure the deal, right?

If you don't buy the whole company, but most of the company's assets instead, that looks a little different...

Just ask the folks who had their 'lifetime' Killington passes when Powdr came to town...

 

[bdfreetuna]

I was reading about this somewhere else and it was mentioned that Steamboat is consistently in the Top 5 for yearly skier visits.

So my question: Is Steamboat typically very crowded as a result?

 

[Jully]

I was reading about this somewhere else and it was mentioned that Steamboat is consistently in the Top 5 for yearly skier visits.

So my question: Is Steamboat typically very crowded as a result?

That is staggering. Top 5 in CO? US? Max Pass visits?

 

[Jcb890]

Stratton does absolutely nothing for me, not a fan, so this announcement has me feeling kind of "meh".

 

[KustyTheKlown]

i spent presidents week at steamboat last season. it wasn't crowded. it was super boring terrain tho. overrated.

 

[bdfreetuna]

That is staggering. Top 5 in CO? US? Max Pass visits?

USA. Okemo is #10 apparently, and the only one in the East on the list. That was a little bit of a surprise (to me). Apparently Killington doesn't make their numbers public or else they might have made the list.

http://unofficialnetworks.com/2015/04/top-10-americas-most-visited-ski-resorts

 

[Jully]

USA. Okemo is #10 apparently, and the only one in the East on the list. That was a little bit of a surprise (to me). Apparently Killington doesn't make their numbers public or else they might have made the list.

http://unofficialnetworks.com/2015/04/top-10-americas-most-visited-ski-resorts

Well I'll be. I don't doubt they get 900K a year, I'm just surprised there aren't more areas beating that. I thought I heard Killington receives around 700 or 800k annually, but they are well above that this year. My bet is that PC and WP both would be on this list too.

 

[BenedictGomez]

It's all how you structure the deal, right?

If you don't buy the whole company, but most of the company's assets instead, that looks a little different...

Just ask the folks who had their 'lifetime' Killington passes when Powdr came to town...

No, if it's a full company acquisition you're getting their liabilities.

I'm sure the 'lifetime' Killington passes were "lifetime" in name only, but carried no actual legal rights (i.e. subject to change, and change they did). It's not the same as a loan, which legally would have to be absorbed by the acquirer.