Shares of Vail Resorts rose nearly 8 percent Monday after it agreed to buy Canadian resort operator Whistler Blackcomb for about $1.1 billion.
Vail would acquire 100 percent of the stock of Whistler, whose shareholders would receive 17.50 Canadian dollars per share in cash and 0.0975 shares of Vail's common stock, Vail and Whistler said in a joint-press release. The total value is C$36.00 per share.
"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," Rob Katz, chairman and CEO of Vail Resorts, said in the statement.
This isn't Vail's first expansion and development deal of this year. In January, Vail purchased the Wilmot Mountain ski resort and made extensive renovations to it. After the Whistler transaction is complete, the companies said they plan to make further investments in Whistler's resort and community.
The companies said Whistler will nominate one member of its board to the Vail board of directors. Whistler CEO Dave Brownlie will continue to lead Whistler as the resort's chief operating officer and will become a member of the senior leadership team of Vail Resorts' mountain division.
The transaction is expected to close in fall 2016, the companies said.
Vail's stock has increased significantly this year, surging more than 21 percent.
MTN 2016 Stock