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Breakingviews: Lifting the Vail on ski M&A

Friday, October 03, 2014 - 03:35

Antony Currie and Rob Cox discuss how the owner of the upscale Colorado resort is using deal-making as a hedge against poor snowfall – and how it could unleash a blizzard of rival mergers.

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-- it was -- up and Phil's -- source of some people not having to use my season. Admiral Coke's long since been found this wonderful week this bulletin -- to. What's going on in the world of emanate within the all races -- -- -- -- -- the country you'll find one of enemies. It's almost trying to control the weather right scale well well. It's that you got this that it's printing business I mean traditionally. Ski resorts. And snowboard resorts -- down by families or in a local institutions in some cases the state. So the new York city New York State on street through local stations but you have this big -- now in the in the industry who's buying a mall buying a bunch of them up. And has created these clusters of resorts it's called Vail Resorts at three billion dollar. Public company and they just bought park city Utah in the day which they can add to the candidates area and they re like -- celebrities and there are legitimate tickets here isn't right they they on a -- in Colorado. Thereabouts near Lake Tahoe in a bunch up in Utah and then they have a couple feeder ones like one near Minneapolis when you're trait that has really seeing. But really interesting idea which is they're not ever -- can't control the weather but they can mitigate. Against the vagaries of mother nature as it were by what it means that aren't right but a couple things one the first thing they say dollar resorts doesn't matter if it's will the -- it's gonna you're gonna love having it's a great time. Bob Obama is that okay they make that their first party. But by having a variety. Resorts around the country you mitigate against bad weather and water -- snowfall one and the other. The other thing it is they have this this thing called an epic passed which you can buy for seven or fifty bucks which is. Really quite a cheap deal actually but for seventy bucks you can go to any of their resorts in US. You can also go to very BA in Switzerland you can go to the twelve -- day in France and -- united in Japan Saturday it. I sympathy but just to put that in perspective you can go so you live and I salt like city. You can go to all the the canyons in Park City and then all these other places much as you'd like no blackout dates. If you would just get pass like that at Stowe in Vermont. It would cost to like fourteen and about polls that place ice skating right and cost us which is somebody -- AIG by the way act alone not that I'm delighted -- at least it. Right I can say the Cassini this is it. This makes me you'll send mixed up and it -- -- prime making money in any brightness. -- finesse to it you can get a steady income that almost covers your expenses one of the guys I talked about this or this column was. Oh win Smith -- you used to be top -- Marilyn's father was found as Maryland's. He ended up buying sugar bush up in Vermont -- and he really he was talking to me about this model for Vail Resorts to public. And he -- that's what he said their give according cover operating expenses. With the sort of subscription fueled by telling the season passes well in advance and everything -- nothing to worry about right element based expenses and just becomes a list right. But you can only do that he's that would ease trade measles well that that thing about it is you know that there's there's only one. This bearish they are putting this model together three billion it. Company there's nothing quite like it in the industry. But the argument because I think. If this works and is working. And you'll see other that you'll see consolidation of the business with a 700 students that reserves in the US and Canada already so. Well thanks that I'm I'm pretty sure the -- of testing ripples of how these next affecting mostly conditions now that. Absolutely. Will be it will break -- he's next.

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Breakingviews: Lifting the Vail on ski M&A

Friday, October 03, 2014 - 03:35