Vacation property operator Hilton Grand Vacations entered an all-cash agreement to acquire peer timeshare firm Bluegreen Vacations for $1.5B as it looks to expand its customer base and bolster vacation offerings.
The total cost of the deal is inclusive of net debt and is expected to close in the first half of 2024, according to a Monday press release from Hilton Grand Vacations. As part of the agreement, Bluegreen Vacations shareholders will receive $75 in cash for each share, more than double Friday’s closing price, Bloomberg reports.
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The deal would increase Hilton Grand Vacations’ membership base from about 525,000 to more than 740,000, and its resort portfolio would expand from 150 properties to nearly 200 properties in 14 new geographies and eight new states, according to the press release.
The combination of Bluegreen Vacations and Hilton Grand Vacations would unlock additional upside for the business, Hilton Grand Vacations President and CEO Mark Wang said.
“Bluegreen Vacations has a strong track record of demonstrated organic growth, a dedicated customer base of more than 200,000 members, and boasts key lead-generating strategic partnerships that will broaden our reach and diversify our tour flow,” Wang said in the release.
Hilton Grand Vacations also signed a new 10-year exclusive marketing agreement with Bass Pro Shops, expanding on Bluegreen Vacations' existing relationship with the retailer.
BofA Securities is acting as the exclusive financial adviser for Hilton Grand Vacations, while Credit Suisse and Wells Fargo are acting as financial advisers for Bluegreen Vacations, according to the release.
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