Ski Perisher-Breckenridge ticket after mogul James Packer sells ski resort to US company
US-based Vail Resorts has bought James Packer's Perisher ski resort for $176.6 million.
The deal includes Perisher Valley, Smiggin Holes, Blue Cow and Guthega resorts on a lease until 2048 with a 20-year option.
Perisher's ski ticket will now include entry to a range of Vail-owned skifields in the US, including Breckenridge, Beaver Creek and Vail in Colorado, Park City and Canyons in Utah and Heavenly, Northstar and Kirkwood in the California and Nevada. It has a $US3.6 billion capitalisation.
The deal was announced to the New York Stock Exchange earlier this morning. The Company indicated that it expects Perisher to generate incremental Resort Reported EBITDA of approximately AU$20 million (approximately US$16 million) during its first twelve months of operation following the acquisition.
The Company expects Perisher to generate positive Resort Reported EBITDA of approximately AU$38 million (approximately US$30 million) during its ski season, June through September, and negative Resort Reported EBITDA of approximately AU$18 million (approximately US$14 million) during its off-season, October through May.
The Company expects Perisher to generate approximately US$6 million of free cash flow in its first year of operations, after deducting capital expenditures at the resort, income taxes (both U.S. and Australian) and all interest expense relating to the acquisition.
These estimates do not include any incremental benefit of increased visitation to the Company's U.S. resorts from Australian guests.
"Perisher season pass holders have an unprecedented opportunity by combining unlimited skiing, from June through October, at the best and largest resort in Australia with season-long skiing, from November through April, at nine of the best mountain resorts in the United States," said chairman Rob Katz.
"Our Company looks forward to welcoming an even greater number of Australian guests to our domestic resorts to showcase the incredible experience we provide."
Until Kerry Packer bought the Perisher ski fields in 1972 - they came unwanted with the takeover of Murray Magazines - skiing in Australia was a leisure activity attracting a relatively small number of enthusiasts.
Murray Magazines published Ski Australia, House & Garden, plus other magazines including Man, Man Junior, Flair, Wheels and Superman comics.