Hilton Grand Vacations to Acquire Diamond Resorts
Hilton Grand Vacations Inc. (“HGV” or “the Company”) announced that it has entered into a definitive agreement to acquire Diamond Resorts International, Inc. (“Diamond”) from funds (the “Apollo Funds”) managed by affiliates of Apollo Global Management, Inc. (together with its consolidated subsidiaries, “Apollo”), funds managed by affiliates of Reverence Capital Partners (“Reverence”), and other Diamond stockholders, in a stock-based transaction with an equity value of approximately $1.4 billion
1. Under the terms of the agreement, the Apollo Funds and other Diamond stockholders will receive 34.5 million shares of HGV common stock, subject to customary adjustments.
The acquisition will combine the strength of HGV’s brand and culture with Diamond, the largest independent timeshare operator. Diamond’s 92 leisure resorts and nearly 400,000 owners uniquely complement HGV’s 62 upscale and luxury prop
Combines largest independent timeshare company with the strength of Hilton Grand Vacations brand and culture. Generates over $125 million in run-rate cost synergies, expected to be achieved in the first 24 months following close.
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Hilton Grand Vacations Inc said on Wednesday it would buy Diamond Resorts International Inc from funds managed by affiliates of Apollo Global Management Inc , Reverence Capital Partners and other stockholders in an all-stock deal for about $1.4 billion.
As per the terms of the deal, Apollo Funds and other Diamond stockholders would get 34.5 million shares of Hilton Grand Vacations’ common stock, subject to customary adjustments.
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Hilton Grand Vacations, which was spun out of hotel operator Hilton Worldwide Holdings Inc in 2017, said the combined company will have 720,000 owners, 154 resorts and 48 sales centers.
By Reuters Staff
2 Min Read
(Reuters) - U.S. timeshare operator Hilton Grand Vacations Inc said on Wednesday it would buy Diamond Resorts International Inc for about $1.4 billion, as the hospitality industry readies for a recovery from the COVID-19 pandemic blow.
Bookings have bounced back from April 2020 lows on a relative easing of lockdowns, while a wider rollout of COVID-19 vaccines is expected to support a rebound in leisure travel.
Timeshare operators such as HGV and Diamond Resorts, along with vacation rentals firms including Airbnb Inc and Vrbo, stand to benefit from an uptick in leisure travel.
Meanwhile, business travel-reliant hotel chains including Marriott and smaller rival Hilton Worldwide are seen as having a longer path to recovery.