Swiss media reports Vail Resorts pursuing more acquisitions in Europe

Swiss media outlets are reporting that Vail Resorts is interested in purchasing more ski resorts in the country, with the Flims Laax Falera ski resort topping the list.

Blick newspaper, on Friday, published a report stating that the American ski giant is interested in buying both the Flims Laax Falera ski resort and Verbier/4 Vallées, which has been an Epic Pass partner ski area for years.

Blick quoted Pierre Besson, the head of the Magic Mountains Cooperation in Switzerland, as saying a takeover of several ski areas, which are not currently for sale, would be possible without cooperation from those ski areas.

“Basically, Vail Resorts is interested in company structures where a single contact person can transfer a lot of ownership, so that a takeover is relatively uncomplicated,” Besson said.

The paper also contacted Verbier/4 Valleys, which stated that there are currently no negotiations because the resort is not for sale.

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An anonymous letter which was reported to have circulated the Verbier area in early 2024 warned the owners of chalets in the resort town that a buyout operation of Verbier/4 Valleys could happen “in the very short term.”

But the Le Matin Dimanche newspaper subsequently reported that Verbier/4 Valleys owner Christian Burrus, who holds more than 40% of the capital with his family, “assures that he has no ongoing discussions with Vail Resorts or anyone else to sell his shares.”

Vail Resorts has not issued any comment on the matter, with a spokesperson saying the company does not comment on speculation or rumor.

But the company, in recent years, has been straightforward about its goals to acquire more ski resorts in Europe. Vail Resorts acquired an 84% ownership stake in Crans-Montana in Switzerland in 2023, and the company also acquired Andermatt-Sedrun in Switzerland in 2022.

“The market in Europe is much bigger so the longer-term opportunity in Europe I think is quite strong, 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 a Sept. 28, 2023, earnings call, reminded investors that the company’s balance sheet “remains strong,” and that Vail Resorts will continue to look at strategic acquisition opportunities in the future.

“We’re 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 finished its third fiscal 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 it could also water down earnings in the short term.

“Given where MTN shares are trading at the moment, around 11x EV/EBITDA on our 2024 and 2025 estimates, and based on purchase multiples of prior Swiss acquisitions, we believe a potential acquisition might initially be dilutive to earnings,” Scholes said.

Scholes said he has not been able to get any comment from Vail Resorts on the matter, but would not be surprised if Vail Resorts was indeed interested in acquiring Flims Laax Falera. Vail Resorts uses the stock ticker symbol “MTN” on the New York Stock Exchange.

“While the report remains unsubstantiated, it would not surprise us if MTN were interested in this resort given their already expressed interest in growing internationally, especially in Europe,” Scholes said.