Hunter Mtn Sold to Peak Resorts for $36.8 million

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Hunter Mtn Sold to Peak Resorts for $36.8 million

New postby dave » Tue Dec 01, 2015 12:29 am

WILDWOOD, Mo., November 30, 2015 -- Peak Resorts, Inc. (NASDAQ:SKIS), a leading owner and operator of high-quality, individually branded ski resorts in the U.S., today announced it has entered into an agreement to purchase Hunter Mountain, the Catskills' premier winter resort destination, for cash consideration of $35 million plus the assumption of two capital leases estimated at approximately $1.8 million. Hunter Mountain generates approximately $27 million (unaudited) in annual revenue. The purchase price is slightly more than six times Hunter Mountain’s adjusted EBITDA, which is estimated at approximately $6 million (unaudited) for its fiscal year ended April 30, 2015.

Peak Resorts currently has preliminary lender commitments for a first mortgage of approximately $20 million, which would be secured by Hunter Mountain assets. The remainder of the cash requirement is expected to be funded by tapping the line of credit the company announced in October 2015. Peak Resorts expects to complete the purchase of Hunter Mountain by year-end 2015.

Timothy D. Boyd, president and chief executive officer, said, “Hunter Mountain, under the stewardship of the Slutzky families, has become one of the iconic ski resorts in the Northeastern United States. Its reputation as one of the premier snowmaking resorts in the East makes it a perfect fit for our portfolio and strategy. We look forward to continuing the rich tradition the Slutzky families have built.

“Our roadmap for growth calls for a mix of organic growth and resort development as well as acquisitions that will let us build our portfolio of ski resorts in the attractive overnight and day-drive segments of the market. We expect this transaction will be accretive to Peak Resorts’ Reported EBITDA in the third quarter of fiscal 2016 and we will continue to evaluate other potential value-add acquisitions,” Boyd noted.

Boyd added, “Over the summer, Hunter Mountain completed a variety of capital improvement projects to enhance the ski experience. Among the projects were a $1.2 million investment in new snow guns and a $500,000 investment in a state-of-the-art compressor to improve snow-making efficiency. In addition, the resort made trail improvements and expanded its Race Foundation facility.”

Boyd concluded, “Peak Resorts is set to become the preeminent ski operator in the metro New York-area with the addition of Hunter Mountain to our portfolio of resorts in New Hampshire, Vermont and Pennsylvania. For this 2015-2016 ski season, we are planning to offer reciprocal programs among the resorts for the season passholders at Hunter Mountain and our current properties. Program details will be available by phone or in person, and also will be posted on the websites for each of the resorts in the coming weeks.”
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Re: Hunter Mtn Sold to Peak Resorts for $36.8 million

New postby mike » Tue Dec 01, 2015 3:35 pm

If I remember correctly, Les Otten tried to buy Hunter a number of years ago for 50+million in cash. In the end, Les tried to finalize the deal with 50+million in stock. But, the Slutzky's were much smarter then he had anticipated. Orville said that the toilet paper in his bathroom was more valuable then Les's stock.

I think the DEP also wanted to buy Hunter.

We'll have to see how things change in Hunter after the deal goes through at the end of this month.
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Re: Hunter Mtn Sold to Peak Resorts for $36.8 million

New postby mtnclimber » Tue Dec 01, 2015 10:19 pm

Hunter has a long and interesting history. The Hammersteins owns it first. But, when they couldn't pay the Slutzky's back, they took the mtn back. Orville and Izzy were really good guys. Rode up on the chair lift with them a couple of times. Hopefully the new owners will run it as well as the Slutzky's did. Time will tell.
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