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Vail Resorts lands Peak Resorts

|About: Vail Resorts, Inc. (MTN)|By:, SA News Editor

Vail Resorts (NYSE:MTN) strikes a deal to acquire Peak Resorts (NASDAQ:SKIS) at $11.00 per share or an estimated purchase price of $264M.

Vail Resorts will add 17 U.S. ski areas to its network of world-class resorts, including locations in New York, Boston, Washington, D.C., Baltimore, Philadelphia, Cleveland, Columbus, St. Louis, Kansas City and Louisville.

CEO update: "Peak Resorts' ski areas in the Northeast are a perfect complement to our existing resorts and together will provide a very compelling offering to our guests in New York and Boston. With this acquisition, we are also able to make a much stronger connection to guests in critical cities in the Mid-Atlantic and Midwest and build on the success we have already seen with our strategy in Chicago, Minneapolis and Detroit."

Vail Resorts intends to finance the deal through a combination of cash on hand, its existing revolver facility and an expansion of its existing credit facility. In addition, Vail Resorts will be assuming or refinancing Peak Resorts' outstanding debt.

The acquisition is expected to generate incremental annual EBITDA of approximately $60M in FY21, the first fiscal year with the full benefit of the synergies of the acquisition, with additional revenue upside in future years.

Shares of SKIS are halted.

Source: Press Release

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