Hilton Grand Vacations announced plans Monday to expand its resort portfolio via a $1.5 billion acquisition of Bluegreen Vacations. HGV stock fell Monday on the news and its earnings. BVH stock more than doubled in during trade.
Hilton Grand Vacations, the publicly-traded affiliate of Hilton Hotels, operates a system of timeshares and vacation ownership resorts.
On Monday, Hilton Grand Vacations announced plans to acquire Bluegreen Vacations for $75 per share in an all-cash transaction. The $75 per share price tag represents roughly a 100% premium from BVH's Friday closing price of 35.52.
The deal adds over 200,000 members and 48 properties in 14 new geographic locations and eight new states, Hilton Grand Vacations announced. The company says the new locations will double its presence along the East Coast and expand its available outdoor and ski destinations.
Once the deal is closed, which is expected in the first half of 2024, HGV's membership will total 740,000 with nearly 200 resort properties. HGV anticipates that the deal will generate $100 million in cost synergies in the first 24 months after the it closes.
Hilton Grand Vacations also signed a decade-long exclusive marketing agreement with Bass Pro Shops, expanding on the outdoor equipment company's relationship with Bluegreen Vacations.
Bluegreen Vacations owns 51% of a joint venture with Bass Pro Shops that includes four outdoor-themed resorts. Bluegreen also has a marketing presence in a majority of Bass Pro locations.
The announcements come as HGV posted mixed results for its Q3 report early Monday. Earnings fell 30% to 98 cents per share, just edging out forecasts of 97 cents. Revenue fell 8.8% to $1.02 billion, short of FactSet forecasts of $1.04 billion.
Stock Action
Hilton Grand Vacations stock fell 8% Monday following its earnings and acquisition announcements. Shares are down roughly 11% so far this year, steadily falling from their 2023 highs of 51.81 in March.
BVH stock spiked nearly 107% to all-time highs Monday. Bluegreen Vacations shares are up 194.3% in 2023.
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