A summer view of the glaciers at the Flims-Laax-Falera ski resort in Switzerland, which Vail Resorts is rumored to be in the process of acquiring.
AP Photo
Swiss media have reported that Vail Resorts is interested in acquiring more ski resorts in the country, with the Flims-Laax-Falera ski resort at the top of the list.
The Blick newspaper published a story on Friday reporting that the American ski giant is interested in buying both the Flims Laax-Falera ski resort and the Verbier/Quattro Vallee, a long-standing Epic Pass partner resort.
Blick quoted Pierre Besson, head of Switzerland's Magic Mountains Corporation, as saying that the acquisition of some ski resorts that are not currently for sale would only be possible without the cooperation of those resorts.
“Fundamentally, Vail Resorts is interested in a corporate structure that allows one person to have a lot of ownership and makes acquisitions relatively easy,” Besson said.
The newspaper also contacted Verbier/4 Valleys, but was told that as the resort is not for sale there are no current negotiations taking place.
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An anonymous letter reportedly circulated in the Verbier area in early 2024 warned chalet owners in the resort town that a takeover operation for Verbier/4 Valleys could happen “within a very short space of time.”
However, Le Matin Dimanche later reported that Verbier/4 Vallées owner Christian Bruss, who together with his family holds more than 40 percent of the stake, “is adamant that he is not in talks with Vail Resorts or anyone else about a sale.”
Vail Resorts has not commented on the matter, and a spokesman said the company does not comment on speculation or rumors.
But the company has been outspoken in recent years about its goal of acquiring more ski resorts in Europe: Vail Resorts acquired an 84% stake in Crans-Montana in Switzerland in 2023, and the company also acquired Andermatt-Sedrun in Switzerland in 2022.
“We think the long-term opportunity in Europe is substantially larger because the market there is much larger, but of course it's going to take longer to get off the ground,” former CEO Rob Katz said during the company's July 2021 earnings call.
Current CEO Kirsten Lynch reminded investors during a Sept. 28, 2023, earnings call that the company's balance sheet “remains strong” and that Vail Resorts will continue to explore strategic acquisition opportunities in the future.
“We're very excited about Europe. The European skier market is almost three times the size of the North American market,” Lynch told CNBC in a November interview.
The company ended its third quarter on April 30 with a cash balance of $717 million.
Some investors reacted to the news on Friday, with Vail Resorts analyst Patrick Scholes of Truist Securities saying he believes Vail Resorts has the financial flexibility for a potential cash acquisition, but that revenue could decline in the short term.
“Given the current trading position of MTN shares, our estimated EV/EBITDA multiple of approximately 11x for 2024 and 2025, and the acquisition multiples in previous Swiss acquisitions, we believe the acquisition may be initially dilutive to earnings,” Scholes said.
Scholes said he couldn't get Vail Resorts to comment on the matter but wouldn't be surprised if the company was genuinely interested in buying Flims Laax Falera. Vail Resorts trades on the New York Stock Exchange under the symbol MTN.
“While the reports are yet to be corroborated, it would not be a surprise if MTN was interested in the resort given that it has already expressed an interest in expanding internationally, particularly in Europe,” Scholes said.
