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Swiss media reports that Vail Resorts is interested in purchasing additional ski resorts in the country, with the Flims Laax Falera ski resort at the top of the list.
The newspaper Blick published a report on Friday The American ski giant is interested in buying both the Flims Laax Falera ski area and Verbier/4 Vallées, which has been a partner ski area of Epic Pass for years.
Blick quotes Pierre Besson, head of the Magic Mountains cooperation in Switzerland, as saying that a takeover of several ski resorts that are not currently for sale is possible even without the involvement of these ski resorts.
“Basically, Vail Resorts is interested in corporate structures where a single point of contact can transfer many ownership shares, making a takeover relatively straightforward,” says Besson.
The newspaper also contacted Verbier/4 Valleys, who explained that there are currently no negotiations as the resort is not for sale.
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An anonymous letter that is said to have circulated in the Verbier area in early 2024 warned the owners of the chalets in the resort that a takeover of Verbier/4 Valleys could happen “at very short notice”.
But the newspaper Le Matin Dimanche subsequently reported that Christian Burrus, the owner of Verbier/4 Valleys and who, with his family, holds more than 40 percent of the capital, “has assured that he is not in negotiations with Vail Resorts or anyone else to sell his shares.”
Vail Resorts has not commented on the matter. A spokesperson said the company does not comment on speculation or rumors.
However, in recent years, the company has openly expressed its goals to acquire more ski resorts in Europe. Vail Resorts acquired an 84 percent stake in Crans-Montana in Switzerland in 2023, and in 2022 the company also acquired Andermatt-Sedrun in Switzerland.
“The market in Europe is much bigger, so I think the long-term opportunity in Europe is pretty good, but of course it will take more time to get going,” former CEO Rob Katz said in a July 2021 earnings call.
Current CEO Kirsten Lynch in an earnings call on September 28, 2023reminded investors that the company’s balance sheet “remains strong” and that Vail Resorts will continue to look for strategic acquisition opportunities in the future.
“We are 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.
The company closed its third fiscal quarter on April 30 with cash of $717 million.
Some investors reacted to the news on Friday. Truist Securities analyst Patrick Scholes for Vail Resorts said he believes Vail Resorts has the financial flexibility for a potential cash takeover, but that it could also result in earnings dilution in the short term.
“Given the current MTN share price, which is around 11x EV/EBITDA according to our 2024 and 2025 estimates, and based on the purchase prices of previous Swiss acquisitions, we believe a potential acquisition could initially be earnings dilutive,” Scholes said.
Scholes said he has not received any comment from Vail Resorts on the matter, but would not be surprised if Vail Resorts is indeed interested in acquiring Flims Laax Falera. Vail Resorts uses the ticker symbol “MTN” on the New York Stock Exchange.
“Although the report is unsubstantiated, we would not be surprised if MTN was interested in this resort as the company has already expressed its interest in international growth, particularly in Europe,” Scholes said.
