Hilton Grand Vacations (HGV) announced Monday it has entered into a definitive agreement to acquire Bluegreen Vacations for about $1.5 billion to expand its customer base and offerings.
HGV, a timeshare company partnered with Hilton Worldwide Holdings Inc (NYSE:HLT), will pay $75 per share for Bluegreen Vacations, almost double the company’s closing price on Friday of US$35.52.
The deal will increase HGV’s customer base from 525,000 to more than 740,000 and will expand its resort portfolio from 150 to nearly 200 properties, including resorts in eight new states.
HGV anticipates expanded and diversified lead flow through Bluegreen Vacations’ partnerships, including an exclusive marketing agreement with Bass Pro Shops.
HGV said it has signed a new 10-year exclusive marketing agreement with Bass Pro Shops.
“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,” HGV CEO Mark Wang said in a statement.
HGV expects about $100 million in cost synergies will be achieved in the first two years from the close of the transaction, projecting future revenue synergies of $75 million to $100 million.
The acquisition is expected to close in the first half of 2024, subject to customary closing conditions and regulatory approvals.
Shares of Bluegreen surged on the announcement, adding 105.7% at US$73.08 in pre-market trade on Monday while HGV shares were down 6% at US$35.
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