Alterra gets a $3 billion infusion

[tirolski]

Some of Powdr’s patrollers been putting up reels.

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How much of the $3billion infusion do the ski patrollers get?

Organizing the Slopes

As resort owners rake in record profits, organizers are trying to unionize ski patrollers across the West — and they’re winning.

capitalandmain.com

 

[MarzNC]

https://unofficialnetworks.com/2024/01/31/3-billion-alterra-investment/amp/

Here's an explanation from the CEO of Alterra from an interview written up by Jason Blevins.

April 2024

Alterra CEO says skiing has reached a “tipping point,” resorts need to ease pain of “really, really mad” customers

In a Q&A, we talk with Jared Smith about climate change, next-gen finance and growing skiing without tarnishing the experience

coloradosun.com

" . . .
Sun: Speaking of improving your education, what exactly is “a single asset continuation vehicle?” A few weeks ago your majority owner, KSL Capital, said it had secured $3 billion in investment for a single asset continuation vehicle for Alterra. I think there’s been a little bit of confusion around that. You don’t have an extra $3 billion in your bank account, right?

Smith: A lot of confusion. I wish I had three billion extra dollars on my balance sheet. I’d go buy some chairlifts. OK, so our ownership group is 60% owned by a private equity firm out of Denver called KSL Capital, one of the leaders in the hospitality industry. We’re 40% owned by the Crown family and the Henry Crown Company out of Chicago. Most private equity investors … when they make investments they say they want that money back with a return in, generally, the 5- to 7-year time frame. So KSL made an investment — the largest investment they’ve ever made — in Alterra in 2017. So when investors want their money back with a little bit of interest the options are: A, to take the company public and take the proceeds from the public market and pay the investors back. Or B, you can sell the company to another private company. Or C, and this is a newer strategy, is a single asset continuation vehicle where you don’t want to sell the business but you go out and say we believe this business has more upside and find new investors who can help pay off the original investors back. It was an opportunity to bring in some new blood. So it was an opportunity for KSL to get liquid without them having to sell the business because they believe in the upside, too, and they want to hold on to it for longer. It was, by far, the best outcome.

Sun: So will there be an IPO later?

Smith: It’s certainly an outcome. This ownership group is committed to the long-term investment in the company. They believe that by continuing to invest the capital that we’re investing in, that these assets will be worth more five, 10, 15 years from now. We’re trying to grow the asset value of our resorts. And it takes a lot of capital and public markets don’t love that much capital going into the business. So for where we are right now, this was the best outcome for us with consistency of ownership, consistency of strategy, consistency in investment. It was a home run. An IPO subjects you to Wall Street, which wants more short-term outcomes, and probably wants to invest less in the business at this time. So, for us, this gives us the runway to continue to operate the way we’ve been operating with consistency. And we love that. At some point, the new investors will go, ‘Hey, it’s been five to seven years, I’d like to get a return on that too.’ And at that point, my guess is the company is big enough that the amount of people that could buy it is probably smaller. So you could do another asset continuation vehicle, but that is harder to do because the company is even larger. Or you can go public. And that would be a fine outcome for us.

Sun: As a reporter, I would love to see you go public so I can finally see what’s going on at Alterra.

Smith, laughing: As the CEO, I would love to continue to be able to see Vail’s numbers and not show ours.

 

[Benny Profane]

So the DOJ is sueing to break up Live Nation/Ticketmaster. Why is this important? Jared Smith, the new CEO of Alterra, was a global chairman of president at Ticketmaster before Alterra. He helped build that monopoly. And now I'll bet he's been talking to Vail about a merger.

 

[tirolski]

So the DOJ is sueing to break up Live Nation/Ticketmaster. Why is this important? Jared Smith, the new CEO of Alterra, was a global chairman of president at Ticketmaster before Alterra. He helped build that monopoly. And now I'll bet he's been talking to Vail about a merger.

With the stock price now <$190 per share Fail's market cap is ~$7.2 Billion.
May need an infusion.

 

[MarzNC]

The update from the Schweitzer by Tom Chasse, CEO, reflects the fact that he's been there since 2006. He grew up in NH, was an instructor at Cranmore, and COO at Attitash before moving west. Clearly Alterra will be spending big bucks at Swchweitzer in the near future.

May 21, 2014

Weathering the Storm: Reflecting on a Challenging Winter Season

www.schweitzer.com

"
This past season proved to be one of the toughest since my arrival in 2006. With extremely limited operations over the Christmas holiday period and biting cold during the January MLK weekend, the challenges seemed insurmountable. The opening of the Outback Bowl was delayed until mid-February, and there were many sleepless nights as doubts loomed over whether we'd make it through to our planned end of the season.

However, just when it seemed like our season outlook was devastated, "Miracle March" came to our rescue, delivering over 7 feet of snow to help salvage the season. They say to expect a year like this every decade, but it's unlikely I'll be on the payroll for the next one.

This past winter season mirrored the hardships of 2014/2015, a period that marked a low point in our efforts to fund capital projects. Plans for Sky House during the 2015 summer season were deferred due to financial constraints.

Similarly, coming out of this tough season, we had intended to proceed with the next phase of Schweitzer Creek Village, but significant work will be postponed for now. While we do not anticipate the road and parking lot to be completed in time for the 24/25 ski season, we are not giving up on the project. Already there has been a significant amount of groundwork completed over the last 2 summers and our need for additional parking remains evident.
. . ."

Here's what Chasse wrote about the sale to Alterra. His time working at Schweitzer is about the same period of the former ownership.

June 2023

A New Chapter for Schweitzer

www.schweitzer.com

" . . .
Aside from new ownership, not much is expected to change. I will remain President and CEO of Schweitzer to help facilitate the transition and lead ongoing efforts to build out the new Schweitzer Creek Village base area. Alterra intends to keep our entire Schweitzer team in place and is committed to retaining our mission, our values, our brand, and our unique and funky culture.
. . ."

 

[Tjf1967]

Gee, it would be great if some of it went to subsidized employee housing, better parking, and cheap transit to hills. The world doesn't need another six pack. But, that would be socialism. Something tells me these money people aren't socialists.

Anything to make it cheaper for you Bennie

 

[tirolski]

So the DOJ is sueing to break up Live Nation/Ticketmaster. Why is this important? Jared Smith, the new CEO of Alterra, was a global chairman of president at Ticketmaster before Alterra. He helped build that monopoly...

Ole Benny called it early.

DOJ Scrutinizing Alterra’s Planned Arapahoe Basin Acquisition

SAM Magazine—Denver, June 28, 2024—Alterra Mountain Company’s planned acquisition of Arapahoe Basin, Colo., is reportedly being reviewed by the Department

www.saminfo.com

 

[Benny Profane]

I don't know. I smell a certain kind of corruption going on there, like someone at Vail making a phone call to someone at the DOJ to make life hard for their competition. How in the world can the anti trust division go after the ABasin deal and not do anything about Vail basically owning everything else in Summit except Copper? And I mean everything. Ski retail shops, paid parking, even some restaurants. Something is fishy. I'd check if the DOJ actors are skiers who recently enjoyed top end trips to a Vail resort.

 

[tirolski]

With the stock price now <$190 per share Fail's market cap is ~$7.2 Billion.
May need an infusion.

I don't know. I smell a certain kind of corruption going on there, like someone at Vail making a phone call to someone at the DOJ to make life hard for their competition. How in the world can the anti trust division go after the ABasin deal and not do anything about Vail basically owning everything else in Summit except Copper? And I mean everything. Ski retail shops, paid parking, even some restaurants. Something is fishy. I'd check if the DOJ actors are skiers who recently enjoyed top end trips to a Vail resort.

Maybe a corporate raider will buy Vail Resorts Inc and break it up so the DOJ doesn’t have to.
With MTN stock now <$175, the whole messy kit & caboodle is <$6.55B market cap.
Or just wait for MTN to go broke.

 

[Peter Minde]

I don't know. I smell a certain kind of corruption going on there, like someone at Vail making a phone call to someone at the DOJ to make life hard for their competition. How in the world can the anti trust division go after the ABasin deal and not do anything about Vail basically owning everything else in Summit except Copper? And I mean everything. Ski retail shops, paid parking, even some restaurants. Something is fishy. I'd check if the DOJ actors are skiers who recently enjoyed top end trips to a Vail resort.

With the consolidation of multiple industries, DOJ hasn't enforced anti-trust legislation in decades.