Vail Resorts Closes On Acquisition of Andermatt

Orascom Development Holding (ODH) is pleased to announce that Andermatt Swiss Alps (ASA), in which ODH owns a 49% stake, has closed the CHF 149 million transaction with Vail Resorts, Inc.

Vail Resorts, Inc. (NYSE: MTN) has closed on its purchase of a majority stake in Andermatt-Sedrun Sport AG, a renowned destination ski resort in Central Switzerland that controls and operates the resort's mountain and ski-related assets including all lifts, most of the restaurants and a ski school operation.

The acquisition represents Vail Resorts' first strategic investment in, and opportunity to operate, a ski resort in Europe. Andermatt-Sedrun, one of the most ambitious resort development opportunities in Europe, is located less than 90 minutes from three of Switzerland's major metropolitan areas (Zurich, Lucerne and Lugano) and approximately two hours from Milan, Italy.

Vail Resorts acquired a 55-percent ownership of the resort operations from Andermatt Swiss Alps AG ("ASA"), which retains a 40-percent ownership stake, with a group of existing shareholders comprising the remaining 5-percent ownership. Vail Resorts' final purchase price of CHF 149 million will be fully reinvested into the resort, with CHF 110 million allocated for use in capital investments to enhance the guest experience on the mountain and CHF 39 million paid to ASA and reinvested into the real estate developments in the base area.

Mike Goar, former vice president and chief operating officer of the United States' largest resort, Park City Mountain in Utah, has been named the vice president, chief operating officer, and managing director of Andermatt-Sedrun Sport AG. Goar's 46-year career in the ski industry includes leadership roles at several of the country's most well-regarded resorts. Goar joined Vail Resorts in 2013 when the company acquired The Canyons Resort in Utah where he was serving as vice president and general manager. Goar also ran Keystone Resort in Colorado and oversaw the operations of the company's three resorts in Lake Tahoe (Heavenly Ski Resort, Kirkwood Mountain Resort and Northstar California) before returning to Park City Mountain from 2019 to 2022.

"I look forward to working with – and learning from – the incredible team at Andermatt-Sedrun and the dedicated community and government partners," said Goar. "I am excited to support the important investments being made into the resort as we work together to continue Andermatt-Sedrun's development as a premier alpine destination in Europe. We are proud to add this special resort to the Vail Resorts network and I am personally committed to operational excellence and collaboration."

Today, Vail Resorts also announced 2022-23 season pass access details through both Epic Pass products on sale now, as well as the local Andermatt-Sedrun-Disentis Annual Pass (ASDA) that will remain available for the 2022-23 ski and ride season.

With the closing of the transaction on August 3, 2022, Vail Resorts, Inc. (Vail Resorts) and Andermatt Swiss Alps AG (ASA) have confirmed investments of CHF 149 million into the destination Andermatt-Sedrun. Together the two partners will accelerate the destination into "The Prime Alpine Destination". ASA has also earmarked additional investments of CHF 350 million into its core business of real estate, hospitality and infrastructure over the next three to five years.

Vail Resorts' CHF 149 million investment is comprised of two components: CHF 110 million investment into Andermatt-Sedrun Sport AG for use in capital investments to enhance the guest experience including lifts, snowmaking, gastronomy, leisure offerings and infrastructure on the mountain.

ASA will fully reinvest its proceeds of CHF 39 million, in addition to the already earmarked CHF 350 million investments, into the continued development of its core business for hotels, infrastructure, and expansion of Andermatt Reuss within the next three to five years. All funds will be shared between Andermatt and Sedrun.

After the approval of shareholders and authorities, Vail Resorts now owns a 55% stake in Andermatt-Sedrun Sport AG. ASA keeps a 40% stake in Andermatt-Sedrun Sport AG, while the remaining 5% is held by individual shareholders. The aim of the partnership between Vail Resorts and ASA is to develop Andermatt and Sedrun into the shared vision of "The Prime Alpine Destination".

As of August 4, the management of the company will be the responsibility of Vail Resorts. Mike Goar is appointed Vice President, Chief Operating Officer and Managing Director of Andermatt-Sedrun Sport AG. There will be no other immediate changes to the ongoing operations of Andermatt-Sedrun, in particular the SkiArena Andermatt-Sedrun.

"I look forward to working with - and learning from - the incredible team at Andermatt-Sedrun as well as our passionate partners and the dedicated communities," says Mike Goar. "I am excited to support the important investments being made into the destination as together, we work toward making Andermatt-Sedrun a premier alpine destination in Europe. We are proud to add this special resort to the Vail Resorts network and I am personally committed to operational excellence and collaboration."

Raphael Krucker, CEO of Andermatt Swiss Alps AG and member of the board of Andermatt-Sedrun Sport AG: "Vail Resorts is the ideal partner to achieve our goal of further developing Andermatt and Sedrun into the Prime Alpine Destination. I am very much looking forward to the cooperation, the joint investments and the complementary know-how from Vail Resorts."