Vail Resorts announced today that they are have entered "into a strategic business combination joining Whistler Blackcomb with Vail Resorts" for an estimated $1.1 billion.

"Combining Whistler Blackcomb with Vail Resorts' portfolio of outstanding resorts provides Whistler Blackcomb with increased financial strength, marketing exposure, guest relationships and broadens the geographic diversity of our company with resorts across the United States, as well as in Australia and Canada. This relationship will bring greater resources to support our current operations and our ambitious growth plans, including the Renaissance project, the most exciting and transformative investment in Whistler Blackcomb's history," said Dave Brownlie, Whistler Blackcomb's chief executive officer.

"Whistler Blackcomb is one of the most iconic mountain resorts in the world with an incredible history, passionate employees and a strong community. With our combined experience and expertise, together we will build upon the guest experience at Whistler Blackcomb while preserving the unique brand and character of the resort as an iconic Canadian destination for guests around the world. We are delighted to add such a renowned resort to Vail Resorts and look forward to expanding our relationships in the Sea-to-Sky community, British Columbia and Canada," said Rob Katz, chairman and chief executive officer of Vail Resorts.

According to the statement, the aggregate cash component of the offer is estimated to be $513 million, which Vail Resorts intends to finance through an expansion of its existing credit facility. The aggregate stock component of the offer is estimated to be $543 million, based on closing stock prices and exchange rates as of August 5, 2016. 

For the full 2016-17 winter season, Whistler Blackcomb will continue to honor the resort's existing season pass products. Vail Resorts will look to integrate Whistler Blackcomb into the Epic Pass and other season pass products for the 2017-18 winter season.

SAM COLLENTINE