Cyclists for AIDS passed through The Valley last week on their way to Maine. Photo: SJS

by Lisa Loomis

Tom McHugh, soon to be new CEO of Summit Ventures, the company purchasing Sugarbush, had a hard time focusing on the venture this week in light of what happened in New York City and at the Pentagon.

McHugh of Warren said that as exciting as the deal is for the community and his three partners, that it paled in comparison to national events. One of his partners, Win Smith, a Warren second homeowner, as well as owner of the Pitcher Inn and Warren Store, was in Tokyo on September 11, being interviewed by email as he awaited information about his family in Greenwich, Connecticut and his co-workers in Manhattan.

"We weren't very focused yesterday, but we're getting back on track today," McHugh said Wednesday, September 12. The American Skiing Company, which has owned Sugarbush since 1994 announced this week that it had reached an agreement to sell Sugarbush to Summit Ventures.

Summit Ventures includes McHugh, Smith, Bob Ackland, Warren and Joe Riemer. Ackland was formerly a vice president of finance at Sugarbush and most recently general manager at Mad River Glen. He and his wife Carol live in Warren. Riemer owns a home in Warren and lives in Greenwich, Connecticut. He is an investment banker. McHugh is also an investment banker who has lived and worked in The Valley since 1985. He and his wife Lonnie live in Warren with their daughters Caroline, 11, and Sarah, 7.

The foursome began negotiations with ASC five months ago during the time when ASC was struggling with refinancing and a merger with MeriStar Hotels and Resorts. When that deal fell through, McHugh said, he picked up discussions he'd had with former ASC president Les Otten and continued them with managing director BJ Fair.

For Smith, this wasn't the first time he'd expressed interest in purchasing Sugarbush.

"I've been coming to The Valley for a long time and my passion is skiing. All of my family are skiers and we all think Sugarbush is the best mountain in the east--no offense to Mad River Glen. Before Les Otten bought it, I was thinking of getting with a couple of others to bid at it, but Otten bought it first," Smith said.

"With the finance problems that ASC was experiencing, we were concerned about the future of Sugarbush and what impact it would have on The Valley if the mountain did not remain open and competitive. I have also always believed that Sugarbush would be best if it could be run by skiers with an appreciation for the special nature of The Valley," Smith said.

The coalition was put together by McHugh, Smith said, after on-going talks between the two of them. When McHugh and Ackland thought the time was right to approach ASC, they brought in Riemer and began negotiations.

Both Smith and McHugh said that their first priorities at the mountain included addressing deferred maintenance and earning back the credibility of the mountain in loyal skiers' minds.

"There's no doubt that we need to address the base lodges and expand and improve them. We also need to pay attention to the details of our ski product," McHugh said.

"ASC has done an excellent job with snowmaking and grooming and we want to continue this and make it even better We want to focus on customer service to regain skiers and snowboarders who have wandered elsewhere, and we certainly want to have a first class ski school, building off the terrific veterans who have remained," Smith said.

Sugarbush's core of existing employees was one reason the Summit group felt comfortable going forward with the sale this close to the ski season. The sale is expected to close in 30 to 45 days just in time for the resort to start thinking about snowmaking.

McHugh said he was still negotiating some final details with ASC, such as whether the All East ski pass, which Sugarbush marketed aggressively for the past six months, would be accepted at Sugarbush this year. He also said there were additional details that had to be worked out for those who had purchased other ASC passes good at all of the seven other resorts the company still owns.

"I think there's a chance we can work something out," McHugh said.

As for developing a hotel, Smith said that's not on the immediate plan. He also said the new group would not be selling the Sugarbush Golf Course, Sugarbush Inn or Sugarbush Health and Racquet Club.

"They are part of what we bought. They are critical to The Valley experience and we will be examining the best way to run them," Smith said.

In terms of corporate structure, McHugh is the CEO and Ackland is the general manager.

"The four of us are not equal partners. Bob is the general manager of the resort, and he and I are more equal in that some of our investment is coming from sweat equity. Win and Joe are equal investors," McHugh said.

The price of the proposed sale was not disclosed. This week's announcement lays to rest many weeks of rumors that discussions were in progress. Both parties were legally obligated to keep the negotiations under wraps until they reached terms over the weekend.

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