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Affiliates of KSL Capital Partners, Henry Crown Close Acquisitions of Mountain Resort Operators.


31 July 2017 - A new joint venture formed by affiliates of US-based private equity firm KSL Capital Partners, LLC and Henry Crown and Co has closed the acquisition of US-based mountain resort operators Intrawest Resorts Holdings, Inc. (NYSE: SNOW) and Mammoth Resorts, the firm said.

Through these transactions, Squaw Valley Ski Holdings, previously owned by affiliates of KSL, Intrawest and Mammoth Resorts are now combined as one company.

This new entity boasts 12 four-season mountain resorts with approximately six m skier visits, 20,000 skiable acres and significant land available for real estate development, as well as Canadian Mountain Holidays, the world's leading heli-ski operator, plus comprehensive aviation and real estate businesses.

Its mountain resorts are geographically diversified across most of North America's major ski regions, including Squaw Valley, Alpine Meadows, Mammoth Mountain Ski Area, Snow Summit, Bear Mountain and June Mountain in California; Steamboat Ski and Resort and Winter Park Resort in Colorado; Blue Mountain Ski Resort in Ontario; Mont Tremblant Resort in Quebec; Stratton Mountain Resort in Vermont; and Snowshoe Mountain Resort in West Virginia.

KSL's Bryan Traficanti became interim chief executive officer, while a comprehensive search for a new chief executive officer is completed.

Executive search firm Spencer Stuart has been retained to assist with the selection of a new chief executive officer.

Effective as of closing, Thomas Marano, Intrawest's chief executive officer, resigned his position; Rusty Gregory, Mammoth Resort's chairman and chief executive officer, is an investor in the new company and will serve on the board, and become senior strategic advisor to the new company; and Andy Wirth, president and chief executive officer of SVSH, will become president and chief operating officer of SVSH.

Additionally, David Perry, previously vice president and chief operating officer of Aspen Skiing Co, L.L.C., also an affiliate of HCC, was named the newly integrated company's president and chief operating officer.

Under the terms of the previously announced Intrawest merger agreement, Intrawest stockholders will receive USD 23.75 in cash for each share of Intrawest common stock, representing a total valuation of approximately USD 1.5bn.

As a result of the closing of this acquisition, Intrawest has ceased trading on the New York Stock Exchange.

Under a separate previously announced purchase agreement, Mammoth Resorts is also being purchased by the new KSL and HCC joint venture. Additionally, SVSH is being rolled into the new venture.

The terms of both Mammoth Resorts and SVSH transactions have not been disclosed.

Squaw Valley Ski Holdings, an affiliate of KSL, is the parent company of Squaw Valley and Alpine Meadows. Squaw Valley and Alpine Meadows are internationally renowned mountain resorts in North Lake Tahoe that span over 6,000 skiable acres and receive an annual average of 450 inches of snowfall and 300 sunny days.

The resorts feature slopeside lodging at The Village at Squaw Valley, which bustles year round with nonstop events and over 50 bars, restaurants and boutiques.

Mammoth Resorts, the leading four-season mountain resort operator in California, is now part of the new organization.

At closing, Mammoth Resorts owns and operates a variety of recreation, hospitality, real estate development, food and beverage and retail enterprises.

This includes Mammoth Mountain Ski Area, Snow Summit, Bear Mountain, and June Mountain. Mammoth Resorts is also the owner-operator of Tamarack Lodge and Resort, Mammoth Mountain Inn, Juniper Springs Resort, the Village Lodge, Mammoth Mountain Bike Park, Snow Summit Bike Park, Mammoth Snowmobile Adventures, Sierra Star Golf Course, and Bear Mountain Golf Course.

Intrawest is a North American mountain resort and adventure company, delivering distinctive vacation and travel experiences to its customers for over three decades.

At closing, Intrawest owns and/or operates six four-season mountain resorts Steamboat Ski and Resort, Winter Park Resort, Mont Tremblant Resort, Blue Mountain Ski Resort, Stratton Mountain Resort, and Snowshoe Mountain Resort - with approximately 8,000 skiable acres and over 1,100 acres of land available for real estate development.

Intrawest's mountain resorts are geographically diversified across most of North America's major ski regions, including the Eastern United States, the Rocky Mountains, and Canada.

The company also operates an adventure travel business, the cornerstone of which is Canadian Mountain Holidays, a leading heli-skiing adventure company in North America.

Additionally, the company operates a comprehensive real estate business through which it manages condominium hotel properties and sells and markets residential real estate. Prior to closing, Intrawest Resorts Holdings, Inc. common stock was traded on the New York Stock Exchange (NYSE: SNOW).

Henry Crown and company, through a newly formed affiliate, is a minority investor in the new joint venture. Henry Crown and Co dates back to the early 1900's when Henry Crown and his brothers started Material Service Corp., which was later merged into General Dynamics.

Aspen Skiing Co owns and operates the four mountains of Aspen Snowmass Snowmass, Aspen Mountain, Aspen Highlands, and Buttermilk as well hospitality properties The Little Nell, Residences at The Little Nell, Limelight Aspen, and Limelight Ketchum in Ketchum, Idaho.

In addition, Aspen Skiing company owns and operates numerous retail and rental locations through the resort and the Roaring Fork Valley.

Aspen Skiing company's resorts and hospitality properties will remain separate from the new entity.

Country: USA

Sector: Hotels/Restaurants/Casinos/Catering

Target: Intrawest Resorts Holdings

Buyer: KSL Capital Partners, Henry Crown and Co


Deal size in USD: 1.5bn

Type: JV

Financing: Cash

Status: Closed

Buyer advisor: , ,

Comment: Under a separate previously announced purchase agreement, Mammoth Resorts is also being purchased by the new KSL and HCC joint venture. Additionally, Squaw Valley Ski Holdings is being rolled into the new venture.
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Publication:M & A Navigator
Date:Jul 31, 2017
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