Hunter, NY – Making good use of a line of credit secured just last month, Peak Resorts announced this afternoon that the company is buying Hunter Mountain ski resort in New York State’s Catskill Mountains for $36.8 million.
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 secured in October. Peak Resorts expects to complete the purchase of Hunter Mountain by year-end 2015.
“Hunter Mountain, under the stewardship of the Slutzky families (Hunter Mountain’s founders), has become one of the iconic ski resorts in the Northeastern United States,” said Timothy D. Boyd, president and chief executive officer of Peak Resorts. “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.”
Starting out in Missouri, Peak Resorts has in recent years expanded its portfolio of ski resorts to include Northeastern mountains including Wildcat, Crotched Mountain and Attitash in New Hampshire, Mount Snow in Vermont, and Jack Frost/Big Boulder in Pennsylvania, among others. The line of credit opened in October was specifically earmarked for acquisitions.
“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.
Hunter Mountain is a popular drive-to ski area for residents of the New York City metro area, complementing the company’s Jack Frost/Big Boulder resort in Pennsylvania. Hunter Mountain generates approximately $27 million in annual revenue, according to a statement issued by Peak Resorts.
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.”