Ski resorts operator Aspen Skiing Co LLC and U.S. private equity firm KSL Capital Partners LLC will buy Intrawest Resorts Holdings Inc for about US$1.5 billion, including debt, Intrawest said on Monday.
Aspen Skiing and KSL Capital’s offer of US$23.75 per share in cash, represents a discount of 6.1 percent to Intrawest’s Friday close. Intrawest’s shares were down 8 percent at US$23.27 in pre-market trading on Monday.
Up to Friday’s close, Intrawest’s shares had risen 49 percent since January 12, the day before Reuters reported that it was working with investment banks on a possible sale.
Intrawest, best known for ski properties include Stratton Mountain in Vermont, Mont-Tremblant in Québec and Steamboat in Colorado, had total long-term debt of US$536.8 million as of December 31, according to the latest quarterly filing.
It also owns mountain resorts, adventure retreats and real estate across the United States and Canada.
Aspen Skiing owns and operates four mountains in a winter resort complex in Colorado.
Under the terms, Intrawest will be bought by a newly-formed entity controlled by affiliates of Aspen Skiing and KSL Capital.
Deutsche Bank Securities, Moelis & Co and Houlihan Lokey were Intrawest’s financial advisers for the deal, while Goldman Sachs advised Aspen Skiing and KSL.
The deal is expected to close by the end of the third quarter of 2017.
Update: Intrawest, which has its principal Canadian office in Banff, Alberta, is majority-owned by U.S. private equity firm Fortress Investment Group LLC. Fortress took Intrawest private in 2006 for US$2.8 billion, and then took it public again in 2014.
(Reporting by Ankit Ajmera in Bengaluru; Editing by Shounak Dasgupta)
(This story has been edited by Kirk Falconer, editor of PE Hub Canada)
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