NEW YORK (TheStreet) -- Shares of Vail Resorts Inc (MTN) are surging, up 8.51% to $83.30, on nearly four times normal trading volume today after the company acquired Park City Mountain Resort from Powdr Corp. for $182.5 million in cash.
The sale ends a legal battle concerning a late renewal of Powdr's long-term lease with its landowner, Talisker Land Holdings, for more than 2,800 acres dating back to the 1970s.
Vail Resorts said that with the acquisition all litigation with Park City Mountain Resort has been settled.
The Utah ski company also announced that due to the new deal, it expects $35 million in incremental EBITDA in its fiscal year 2015, and anticipates significant tax benefits over the next 15 years including about $12 million in additional annual taxable depreciation and amortization expense.
Separately, TheStreet Ratings team rates VAIL RESORTS INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate VAIL RESORTS INC (MTN) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."