Merlin Entertainments has announced the sale of its Australian ski resorts, Hotham and Falls Creek, to Vail Resorts, Inc.
Under the terms of the deal, which is expected to close by June 2019, Vail Resorts is to pay A$174 million (£95 million), representing a multiple of 8.8x 2018 EBITDA.
Commenting on the announcement, Nick Varney, Chief Executive Officer of Merlin Entertainments, said:
“We are pleased to reach this agreement with Vail Resorts, which will allow us to focus on our core business of location based entertainment, specifically theme parks and Midway attractions. It will see the business transfer to a company with a strong track record in ski resort development, and we wish Vail Resorts and the teams in Australia well.”
Vail is a leader in global mountain resorts, operating 15 world-class destinations and three urban ski areas.
Ski resorts turn to entertainment
Ski resorts in South Korea are increasingly adding entertainment options to occupy non-skiers. The Vivaldi Park resort has diversified its offerings to appeal to a broader audience.