Mammoth Resorts will be acquired by a newly formed entity controlled by affiliates of the Aspen Skiing Company, L.L.C., and KSL Capital Partners, LLC. The transaction is expected to close by the end of the third quarter of 2017, and is subject to certain closing conditions, including regulatory approvals.
Mammoth Resorts is the current owner of Mammoth Mountains Ski Area, Snow Summit, Bear Mountain and June Mountain.
“Mammoth has been Southern California’s mountain home since 1948”, says Rusty Gregory, chairman and CEO of Mammoth Resorts. “After doubling down on our offerings to Southern California with the purchase of Snow Summit and Bear Mountain in 2014, joining this new venture led by Aspen and KSL is the next logical chapter in the story of Mammoth Resorts. This new platform, built around a collective passion for the mountains and our commitment to the people who visit, work and live there, is exactly what the ski resort business needs. I am excited about the future prospects for Mammoth Resorts, our people and this new enterprise.”
The terms of the transaction were not disclosed, and KSL and Aspen previously announced plans to acquire Intrawest Resorts Holdings, Inc. through this new entity.
“We have taken great pride in our ownership of Mammoth over the last 12 years. We invested in the mountains, our people, and planning for the long term future. Together with Mammoth’s talented management team, we successfully navigated a very tumultuous period. We implemented state of art marketing programs, installed modern RFID technology to improve traffic flow, and we added significant new lift capacity. By also acquiring and integrating Bear Mountain and Snow Summit into Mammoth we cemented Mammoth Resorts' position as the leading provider of ski and summer mountain experiences for all of Southern California,” says Barry Sternlicht, chairman and CEO of Starwood Capital Group. “We had greater plans for Mammoth but the Great Recession and then some less favorable weather, interfered with our strategic aspirations in a finite life investment vehicle. We know Aspen and KSL have the experience, commitment, and balance sheet to help make our vision a reality.”
Mammoth will continue to honor the resort’s existing pass products that are currently on sale, including the Mountain Collective for the full 2017–18 winter season.
“Mammoth is a special place. The landscape is spectacular, the mountain is phenomenal and the place is in constant motion. Whether it’s the vibrant park and pipe scene, the high quality alpine racing programs, or excellent mountain biking, Mammoth has it all,” says Mike Kaplan, CEO of Aspen. “At the same time, Bear and Snow Summit serve local skiers perhaps better than anyone in the industry with high quality skiing and riding right on the doorstep of Southern California. We couldn’t be more pleased to work with these extraordinary properties.”
Morgan Stanley & Co. LLC is serving as financial advisor to Mammoth Resorts. Goldman, Sachs & Co. is serving as financial advisor to the new entity formed by Aspen and KSL.
Kirkland & Ellis LLP is serving as legal advisor to Mammoth. Hogan Lovells US LLP, Latham and Watkins LLP and Simpson Thacher & Bartlett LLP are serving as legal advisors to Aspen and KSL.
“If you live in Southern California and want to ski, Mammoth, June, Bear and Snow Summit universally come to mind first,” says Eric Resnick, CEO of KSL. “This transaction will allow the combined company to better serve Mammoth’s loyal customers while at the same time exposing these world class resorts to a broader audience. Mammoth Resorts does so many things well. We are excited to learn from their talented team."
Additional information can be found at starwoodcapital.com.