Peak Resort Acquisitions

[mbedle]

Interesting article on Peak Resorts opening a like of credit to fund acquisitions. Maybe this has something to do with Saddleback? Sorry - forgot the link:

http://www.firsttracksonline.com/2015/10/21/peak-resorts-opens-line-of-credits-to-fund-acquisitions/

 

[Skimaine]

Certainly a possibility. It gives them the war chest to handle the transaction. I am not sure how Saddleback fits in their portfolio. Maybe quite good as they seem to have a eclectic bunch of properties.

 

[yeggous]

Certainly a possibility. It gives them the war chest to handle the transaction. I am not sure how Saddleback fits in their portfolio. Maybe quite good as they seem to have a eclectic bunch of properties.

People said the same thing at just about all of their acquisitions in New England. The only one that fit their precedent was Crotched when they first moved in.


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[wtcobb]

Saddleback would be a nice addition to the Granite Pass, if it can withstand a non-Granite State addition and avoid the price hike as with Mt. Snow.

 

[Jully]

I know if Peaks buys Saddleback I'm almost certainly getting a pass for them. That would be an amazing portfolio in my book. Saddleback, Wildcat, Attitash. Wow.

Plus I'd trust what they do with saddleback's infrastructure for improvements. Really enjoy their management of wildcat.

 

[Jully]

Saddleback would be a nice addition to the Granite Pass, if it can withstand a non-Granite State addition and avoid the price hike as with Mt. Snow.

They'd probably change the name or at least put vertical value card benefits on the SB pass for NH mountains and vice versa.

Time and time again though multimountain passes have proven successful. I wonder if their Mount Snow pass sales take a hit because it's single mountain? Though I suppose all the competing areas nearby are single mountain passes too.

 

[yeggous]

They'd probably change the name or at least put vertical value card benefits on the SB pass for NH mountains and vice versa.

Time and time again though multimountain passes have proven successful. I wonder if their Mount Snow pass sales take a hit because it's single mountain? Though I suppose all the competing areas nearby are single mountain passes too.

The Mount Snow pass includes their mountains in Pennsylvania and New Hampshire. It's practically double the price of the Granite Pass.

 

[Newpylong]

Would be a good addition but didn't they say it wasn't Peak in the what little info has been released?

 

[xwhaler]

Saddleback originally on the block for $12M then later dropped to $9M. Peaks getting a $15M line of credit today which would fund both the purchase and upgrades (Rangeley)
Hard not to connect the dots here....would be quite the pass.

 

[mbedle]

This is a direct quote from the Tim Boyd, just seem to fit into saddleback's sale.

I would like to address where we are on the M&A front currently. Long term, we believe acquisitions offer us the greatest potential for significant growth. Historically this is the area that Peak Resorts has seen its largest growth.

The two segments of the ski industry that we operate in, the day and the overnight drive segments clearly offer the most potential targets in the ski industry. We fully expect to take advantages of this as we've done in the past.

In the short term, our outlook has not changed. We still believe we will be able to begin executing on this part of our growth strategy sometime in this fall.

 

[skifastinvt]

Has anyone considered Waterville Valley as the primary target? Waterville seems to be a much closer fit to the current portfolio.

 

[deadheadskier]

I'd rather see Saddleback, but WV probably has the potential for a greater financial return for the location alone.

Great day trip distance from Boston when folks can't make it up to the MWV for an overnight. WV offers more compelling cruising terrain than Crotched.

The only downside is if WV was acquired, the Granite price would probably go up a lot more than with Saddleback. I'm really happy with the Granite price point right now and hope it doesn't change much.

 

[yeggous]

I'd rather see Saddleback, but WV probably has the potential for a greater financial return for the location alone.

Great day trip distance from Boston when folks can't make it up to the MWV for an overnight. WV offers more compelling cruising terrain than Crotched.

The only downside is if WV was acquired, the Granite price would probably go up a lot more than with Saddleback. I'm really happy with the Granite price point right now and hope it doesn't change much.

Is WV even for sale? Ownership seems to be investing and expanding there.

We all know it won't happen, but Magic makes the most sense for them. The can piggyback with Mt Snow like they already do in the MWV to compete locally. In the day trip / overnight arena, there is also Bolton Valley which brings them into a new region.

Or they are just planning to buy some more local bumps in the Midwest or Mid-Atlantic. Those have proven to be profitable for them. What is for sale in NY or PA? Tack something else into the Nor'easter pass.


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[deadheadskier]

Pretty certain WV is for sale

 

[slatham]

Can't say for sure what they're going to buy but this is a clear indication that they are in discussions with someone about a purchase. Could fall through of course, and which mountain it is would be pure speculation. But the LOC is for a purchase that they plan to make in the short term.

 

[Jully]

Pretty certain WV is for sale

Definitely for sale. A couple seasons ago (2?) They fired a bunch of groomers and snowmakers that had worked there awhile. They're trying to expand but they're moving pretty slowly aren't getting much access to capital, plus they have released really lofty plans with the village gondola.

Seems to me the current ownership is trying to cut costs while showcasing the potential of the mountain.

Peaks would do a great job with WV I'm sure, and the place desperately needs new energy in my opinion, though it's pretty irrelevant to me if they go that route.

Anyone know what the asking for WV would be? The $15 million matches up with SB, not sure if Waterville would be more than that.

 

[yeggous]

Definitely for sale. A couple seasons ago (2?) They fired a bunch of groomers and snowmakers that had worked there awhile. They're trying to expand but they're moving pretty slowly aren't getting much access to capital, plus they have released really lofty plans with the village gondola.

Seems to me the current ownership is trying to cut costs while showcasing the potential of the mountain.

Peaks would do a great job with WV I'm sure, and the place desperately needs new energy in my opinion, though it's pretty irrelevant to me if they go that route.

Anyone know what the asking for WV would be? The $15 million matches up with SB, not sure if Waterville would be more than that.

Probably about $15M.

http://www.nhbr.com/November-5-2010/Waterville-Valley-returns-to-local-ownership/

 

[deadheadskier]

Apparently the price paid by Sununu for WV in 2010 was less than $12M.

http://www.boston.com/news/local/ne...h_ski_area_owner_sununu_says_perspective_key/


Not sure what it would go for today. They haven't done much to the place that I'm aware of other than make plans for expansion.

 

[mbedle]

Definitely for sale. A couple seasons ago (2?) They fired a bunch of groomers and snowmakers that had worked there awhile. They're trying to expand but they're moving pretty slowly aren't getting much access to capital, plus they have released really lofty plans with the village gondola.

Seems to me the current ownership is trying to cut costs while showcasing the potential of the mountain.

Peaks would do a great job with WV I'm sure, and the place desperately needs new energy in my opinion, though it's pretty irrelevant to me if they go that route.

Anyone know what the asking for WV would be? The $15 million matches up with SB, not sure if Waterville would be more than that.

What does firing a couple of employees and talking about expansion have to do with potentially being for sale. They seem to be moving forward in the right direction, from my point of view.

 

[Jully]

Apparently the price paid by Sununu for WV in 2010 was less than $12M.

http://www.boston.com/news/local/ne...h_ski_area_owner_sununu_says_perspective_key/


Not sure what it would go for today. They haven't done much to the place that I'm aware of other than make plans for expansion.

Maybe get it for $12 million then spend $3-5 million (carpet loaded or HSQ) more on a new lift for Green Peak?

http://www.newenglandskiindustry.com/viewstory.php?storyid=326

Says there's an option to increase the loan to $20 million.
Also claims there are two Maine targets that are potentially in their sites. What's the other one? If they're going for metropolitan proximity you really only have Shawnee, Abram, or Black. Though I don't think anyone is looking to sell those.