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Published: Tue, April 11, 2017
Economy | By Melissa Porter

Aspen Skiing Co., KSL buying Intrawest Resorts Holdings

Aspen Skiing Co., KSL buying Intrawest Resorts Holdings

On Monday, Mount Tremblant and Blue Mountain owner Intrawest Resorts Holdings Inc. announced it has agreed to be acquired by the USA ski resort company Aspen Skiing Co. and private equity firm KSL Capital Partners in a US$1.5 billion deal.

Under the terms of the deal, Intrawest shareholders will receive $23.75 in cash, a 40 per cent premium to Intrawest's closing stock price of over $16.97 on 12 January, the trading day prior to Reuters' report speculating that the company was exploring a potential sale.

Per the agreement, Aspen Skiing Company and KSL will now control the Winter Park and Steamboat ski areas in Colorado, as well as the Mont Tremblant ski area in Quebec, Blue Mountain in Ontario, Stratton Mountain Resort in Vermont and Snowshoe Mountain in West Virginia, as well as Canadian Mountain Holidays, the world's largest heli-skiing outfit. It also operates the Winter Park Ski Area, which is owned by the city of Denver. KSL already owns Squaw and helps manage Snowmass. Deutsche Bank Securities Inc., Moelis & Company LLC and Houlihan Lokey are serving as financial advisors to Intrawest.

To make the deal, Aspen partnered with KSL Capital Partners to form a new entity.

Yesterday Intrawest Resorts Holdings Inc (NYSE:SNOW) traded -6.58% lower at $25.30.

Intrawest, which in the late 1990s saw its total revenues lean away from skiing and toward slopeside condo sales, triggering fears that skiing would become an amenity for real estate sales, has about 1,100 acres of land available for real estate development at the six resorts it owns or controls. However, management will remain the same at the California ski resort combo.

One interesting wrinkle is that this will take Intrawest off the stock market. For more information, visit www.intrawest.com.

According to a media release, Stratton Mountain has been acquired by the Aspen Skiing Company and KLS Partners. Since 2005, KSL has raised approximately $7.5 billion in equity capital commitments.

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