Report: Vail Resorts eyes Europe expansion
Vail Resorts is not commenting on speculation that the company is pursuing another acquisition in Switzerland, this time at Crans Montana.
The Swiss news outlet Le Temps reported last week that Czech billionaire Radovan Vitek, the owner of Crans Montana Aminona mountain railways, was in talks with Vail Resorts regarding a sale.
It would be Vail Resorts’ second ski area acquisition in Switzerland in the last two seasons, as the company also completed a 55% ownership stake in Andermatt-sedrun during the runup to the 2022-23 season. But there are some sticking points in the deal, including one that should be familiar to skiers in Vail’s namesake resort: parking, and the balance between municipal parking services and resortsupplied options.
“What will ultimately decide this deal is whether Vail Resorts wants to take over the Crans Montana parking lots owned by Radovan Vitek,” according to one interpretation of the deal provided by Unofficial Networks. “The problem with these parking structures is that some need repairs, while others are unusable. Vail Resorts wants these lots to be taken over by the municipality. If the billionaire doesn’t agree with these terms, the deal could possibly go kaput.”
In 2021, former CEO Rob Katz told investors that a presence in the European skiing market is something the company is interested in for the long term and now, under new CEO Kirsten Lynch, Vail Resorts has begun that process.
“The market in Europe is much bigger so the longer-term opportunity in Europe I think is quite strong, but of course it will take more time to get going,” Katz said in a July 2021 earnings call.
Lynch, in a Sept. 28 earnings call, reminded investors that the company’s balance sheet “remains strong,” and that Vail Resorts will continue to look at strategic acquisition opportunities in the future. Vail Resorts has $563 million in cash on hand, with another $646 million available in credit, for a total cash and revolver availability of approximately $1.2 billion.
After closing on its purchase of a majority stake in Andermatt- Sedrun in August 2022, Lynch said the company is looking for other acquisition targets in Europe, as well.
“We’re very excited about Europe, the skier market in Europe is almost three times the size of the market in North America,” Lynch said during a CNBC interview in November.
Lynch said Vail Resorts viewed its Andermatt acquisition as “an opportunity to grow our market share of the luxury European ski market, as well as listen and learn to unlock some future growth opportunities in Europe.”
In March, Vail Resorts announced that Disentis Ski Area, which neighbors Andermatt, will join Vail Resorts’ Epic Pass as a partner resort for the 202324 season. The company also extended its long-term partnerships with three
other European ski areas: Les 3 Vallées in France, Ski Arlberg in Austria and Skirama Dolomiti in Italy.
“For the 2023-2024 European ski season, we are excited to add Disentis as a long-term partner resort, providing pass holders access to the largest ski area in the heart of Switzerland spanning across Andermatt- Sedrun and Disentis,” Lynch said.