US firm to take over Crans-Montana ski station

Vail Resorts completed the deal by buying an 84% stake in Remontées Mécaniques Crans Montana Aminona (CMA) SA, which controls and operates all the resort’s ski lifts.

The company has also bought an 80% stake in SportLife SA, which operates one of the resort’s ski schools, it said in a press releaseExternal link. Vail Resorts is also becoming the sole owner of the resort’s 11 restaurants.

“Our acquisition of the resort aligns to our growth strategy of expanding our resort network in Europe,” said Kirsten Lynch, CEO of Vail Resorts. The deal aims to create “even more value for our Pass Holders and guests around the world.”

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Deal in progress

The deal is scheduled to be completed during the 2023-2024 ski season, during which time operations at Crans-Montana will continue as normal. Vail Resorts says it is committed to retaining the vast majority of employees, existing operational infrastructure and local expertise.

Subject to adjustments when the agreement is finalised, the value of the resort’s operations is estimated at CHF118.5 million ($135.5 million), including around CHF7 million of debt. The US group expects earnings before interest, tax, depreciation and amortisation (EBITDA) of around CHF5 million in its first full year of operation.

Epic Pass

The Crans-Montana ski area will be integrated into the Epic Pass network for the 2024-2025 season, a pass which gives access to skiing in all the group’s resorts. The network includes Verbier 4 Vallées, where anyone with the pass can ski for free for five days.

Vail Resorts anticipates significant growth for Crans-Montana thanks to continued investment in the resort and its Epic Pass integration. This will attract a “broader population of international guests to the resort who are seeking a high-end destination resort experience in the Swiss Alps” the group said.

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Subject to the timetable for approval and completion of the various projects, the American group plans to invest around CHF30 million over the next five years to enhance the visitor experience. After these investments and integration into Epic Pass, the company expects annual EBITDA to exceed CHF15 million.

Operational and marketing measures will be the main growth drivers in the initial phase. These will be supported by investments to improve efficiency in gastronomy and to expand and optimise artificial snow production capacity.

Following completion of the transaction, annual maintenance investments will amount to CHF3 million.

Local reaction

In a statement issued by its committee, the Association of Communes of Crans-Montana (ACCM) said it was delighted to be working closely with Vail Resorts. The American group will devise a long-term strategy for developing the resort and inject new energy, which will benefit the region’s economic structure as a whole, the association said.

This acquisition should also prove positive for the organisation of the Alpine World Ski Championships, which will be held in Crans-Montana in 2027, it added. Crans-Montana Tourisme & Congrès said that the Vail Resorts network will be “an undeniable asset”, particularly for developing the North American market.

Vail Resorts is no stranger to Switzerland. Based in the state of Colorado, the American group has owned 55% of the ski-lift company in the Andermatt-Sedrun Urano-Gison ski region since August 2022.