As part of the agreement, the Colorado-based business will acquire a 55 percent investment in Andermatt-Sedrun Sport AG, which manages and operates the resort’s mountain assets, which include ski lifts, the majority of its restaurants, and a ski school, among other things.
It is expected that the present owner, Andermatt Swiss Alps AG, would keep a 40 percent ownership in the resort, with the remaining 5 percent held by a group of existing shareholders.
At the same time, Vail Resorts said that it would spend around $160 million in the destination. Approximately $118 million will be spent on capital enhancements “to improve the visitor experience on the mountain,” such as lift upgrades and replacements, snow surface and snowmaking improvements, and an increase of on-mountain eating options, according to the resort’s website.
A total of somewhat less than $42 million will be paid to Andermatt Swiss Alps AG, with the proceeds being reinvested in real estate projects in the resort’s base region.
The deal is planned to finalize prior to the start of the 2022-23 ski season in Colorado.
According to Vail Resorts CEO Kirsten Lynch, the company’s plans to expand into Europe have been “a long-term strategic objective” for the organization.
“We are thrilled to welcome this incredible Swiss destination to our network of world-class resorts, and we look forward to welcoming Epic Pass, Epic Day Pass, and Epic Local pass holders to enjoy the resort’s charming villages, alpine terrain, and extensive amenities,” said Vail Resorts CEO John Lynch in a statement.
Andermatt-Sedrun is located in central Switzerland, less than 90 minutes from Zurich, Lucerne, and Lugano, and around two hours from Milan, Italy. It is accessible by car, train, or bus.
At a height of slightly over 9,800 feet above sea level, the SkiArena Andermatt-Sedrun ski area provides around 75 kilometers of diverse terrain throughout the mountains of Andermatt, Sedrun, and Gemsstock.
Luxurious accommodations are available in the resort, including the five-star The Chedi Andermatt, the Radisson Blu Hotel Reussen, and a variety of high-end condominiums, studios, and flats.
There is also a music theater, an 18-hole golf course, and three Michelin-starred restaurants on the premises of the resort.
