Hilton Grand Vacations Inc. (HGV) has recently announced an exciting agreement to acquire Bluegreen Vacations Inc. (BVH) in a cash deal worth $1.5 billion, including debt. This strategic move cements Hilton’s position in the vacation ownership industry and sets the stage for future growth and expansion.
The Deal
In this transaction, Hilton will pay $75 in cash for each outstanding share of Bluegreen, which represents a remarkable 111.1% premium over Friday’s stock closing price of $35.52. This offer implies a market capitalization for Bluegreen of approximately $1.28 billion.
Synergies and Membership Expansion
Hilton expects this acquisition to generate around $100 million in synergies, strengthening its operational and financial performance. Additionally, this deal will significantly expand Hilton’s membership base, growing it from over 525,000 to more than 740,000.
Strategic Partnership with Bass Pro Shops
In other exciting news, Hilton has signed an exclusive 10-year marketing agreement with Bass Pro Shops, a leading retailer of outdoor recreation products. This partnership is particularly impactful as Bluegreen currently serves as the official vacation ownership partner of Bass Pro Shops.
Closing Details
The acquisition is anticipated to close during the first half of 2024, subject to regulatory approvals and customary closing conditions.
Conclusion
Hilton Grand Vacations Inc.’s acquisition of Bluegreen Vacations Inc. marks a significant milestone in the vacation ownership industry. This cash deal valued at $1.5 billion, including debt, not only reinforces Hilton’s market position but also promises to deliver impressive synergies and expand its membership base. With this exciting development and the new strategic partnership with Bass Pro Shops, Hilton is poised for a bright future in the industry.
