Hilton Grand Vacations Inc. (HGV) has entered into a definitive agreement to acquire Bluegreen Vacations for $75 per share in an all-cash transaction, representing total consideration of approximately $1.5 billion, inclusive of net debt.
The transaction will increase HGV’s membership base from more than 525,000 to more than 740,000 and its resort portfolio from 150 to nearly 200 properties in 14 new geographies and eight new states.
With headquarters in Boca Raton, FL, Bluegreen Vacations has 49 Club Resorts and 24 Associate Resorts in destinations such as Orlando, Las Vegas, the Smoky Mountains, Myrtle Beach, Charleston, the Branson, MO, area, Nashville and New Orleans, among others.
“I’m excited to enhance the breadth and quality of our already best-in-class vacation ownership and experiences offering with the announcement of our agreement to acquire Bluegreen Vacations,” said Mark Wang, president/CEO, Hilton Grand Vacations. “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. Along with our long-standing relationship with Hilton, this highly complementary combination will also unlock additional upside by leveraging the infrastructure we have built over the past few years with the launch of the Hilton Vacation Club brand, our HGV Max membership offering an the HGV Ultimate Access experiential platform. We’re confident that our team members, shareholders, members and consumers will all significantly benefit from the combination of these exceptional organizations.”
Alan Levan, CEO, Bluegreen Vacations, said, “Today’s announcement represents another exciting chapter for Bluegreen Vacations. Combining with HGV will create an even more compelling vacation ownership offering, continuing to provide our owners and guests with enjoyable and unique experiences across a broader range of world-class destinations. I am extremely proud of the entire Bluegreen team for helping build Bluegreen into a leading vacation ownership company.”
The transaction, which was unanimously approved by the board of directors for both companies, is expected to close during the first half of 2024 and is subject to customary closing conditions and regulatory approvals.
HGV’s management team, including Wang, CFO Dan Mathewes and COO Gordon Gurnik, will continue to serve in their current roles upon transaction close.
BofA Securities is acting as the exclusive financial advisor for HGV, and Alston & Bird LLP, Simpson Thacher & Bartlett LLP and Foley & Lardner LLP are acting as legal counsel. Credit Suisse and Wells Fargo are acting as financial advisors for Bluegreen Vacations, and Stearns, Weaver, Miller is acting as legal counsel.
HGV has received financing commitments from Bank of America, Deutsche Bank, Barclays and J.P. Morgan to consummate the transaction.
