2023-11-30 11:47:11
The American group Vail Resorts becomes owner of the Crans-Montana (VS) ski area. He acquired 84% of the shares in the Crans Montana ski lift company Aminona (CMA) SA which controls and operates all of the ski lifts.
The company is also acquiring 80% of the shares of the limited company SportLife, which operates one of the resort’s ski schools, it announced Thursday in a press release. Finally, Vail Resorts (see also box) becomes the sole owner of the eleven restaurants located in the resort.
“The acquisition of this resort is anchored in our growth strategy and the development of our network of resorts in Europe” notes Kirsten Lynch, director of Vail Resorts. It aims to bring “additional added value to our Pass holders (Epic Pass, n.d.l.r.) and to our customers around the world.
Transaction in progress
The transaction is planned for the 2023/2024 ski season, during which operations in Crans-Montana will continue normally. Vail Resorts is committed to retaining the vast majority of employees, existing operational infrastructure, and local expertise.
Subject to adjustments upon finalization of the agreement, the valuation of the station’s operations is estimated at 118.5 million francs, including approximately 7 million in debt, which will remain. The American group expects earnings before interest, taxes, depreciation and amortization (EBITDA) of around 5 million during the fiscal year of its first full year of operation.
Integration with Epic Pass
The Crans-Montana ski area will be integrated into the Epic Pass network of packages for the 2024/2025 season, a subscription that allows you to ski for free in all the group’s resorts. This network also has partner resorts including Verbier 4 Vallées, where anyone with an American pass can ski for five days for free.
Vail Resorts anticipates significant growth for Crans-Montana, through continued investment in the resort and its integration with Epic Pass products. “This will help attract a more diverse international clientele seeking a high-end experience in the Swiss Alps,” says Vail Resorts.
Subject to the schedule for approval and completion of the various projects, the American group plans to invest around 30 million francs spread over the next five years to improve the visitor experience. After these investments and the integration with Epic Pass, the company expects an annual EBITDA of more than 15 million.
Operational measures and marketing actions will be the main growth levers during the initial phase. They will be supported by investments aimed at improving efficiency in gastronomy and expanding and optimizing artificial snow manufacturing capacities.
After the transaction is finalized, annual maintenance investments will amount to 3 million francs.
The communities rejoice
In a statement from its committee, the Association of Municipalities of Crans-Montana (ACCM) said it was delighted to work in close collaboration with Vail Resorts. The American group will develop a long-term strategy to develop the station and will inject new energy into it, beneficial to the entire economic structure of the region, details the association.
This acquisition should also prove positive for the organization of the Alpine Ski World Championships which will take place in Crans-Montana in 2027, she also notes. On the Crans-Montana Tourism & Congress side, it is indicated that the Vail Resorts network will be “an undeniable asset”, particularly for developing the North American market.
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