Merlin Entertainments has announced the sale of its Australian ski resorts, Hotham and Falls Creek, to Vail Resorts.

The purchase price is A$174 million,  roughly £95 million, and is subject to certain adjustments related to the timing of closing.

The deal represents a multiple of 8.8 on 2018 EBITDA.

Nick Varney, chief executive of Merlin Entertainments, said: “We are pleased to reach this agreement with Vail Resorts, which will allow us to focus on our core business of location-based entertainment, specifically theme parks and Midway attractions.

“It will see the business transfer to a company with a strong track record in ski resort development, and we wish Vail Resorts and the teams in Australia well.”

The deal is subject to regulatory approval and is expected to close by June.

Net proceeds will be used for general corporate purposes at the location-based entertainment provider.