Hilton Grand Vacations Completes Acquisition of Bluegreen Vacations
Summary
The all-cash transaction, with total consideration of approximately $1.5 billion, inclusive of net debt, broadens HGV’s offerings, customer reach and sales locations, creating a premier vacation ownership and experiences company. The addition of exciting new outdoor destinations and world-class strategic partnerships, including Bass Pro Shops and NASCAR, transforms our business from a leader in the vacation ownership industry to a premier vacation ownership and experiences company that builds on our legacy of adventure, innovation and exploration. Together, we have the opportunity to offer our members and guests access to even more memorable vacations and experiences, while enhancing our ability to drive long-term shareholder value.” In addition to the strategic benefits anticipated from scale and expanded lead generation, the combination unlocks additional upside by leveraging the infrastructure developed as part of HGV’s recent business evolution, including the successful launch of its Hilton Vacation Club brand, the expanded access provided through its HGV Max membership and the HGV Ultimate Access experiential events platform. The transaction is adjusted free cash flow accretive and is expected to generate approximately $100 million in run-rate cost synergies in the first 24 months following close. The combination also supports higher free cash flow conversion and enhances HGV’s base of recurring EBITDA.