Bluegreen Vacations Holding Corporation to be Acquired by Hilton Grand Vacations
Monday, November 6, 2023
Bluegreen Vacations Holding Corporation has just announced that it has entered into a definitive agreement to be acquired by Hilton Grand Vacations. It has been acquired for $75.00 per share in an all-cash translation, representing a total value of $1.5 billion, including of net debt.
Through the merger agreement terms, Bluegreen Vacations’ stockholders will receive $75.00 in cash for each share of the Company’s Class A Common Stock and Class B Common Stock that they hold at the time of closing of the merger.
Alan B. Levan founded the predecessor to Bluegreen Vacations Holding Corporation in the 1970’s. Since then, it has been a diversified holding company for over 50 years. Throughout this time, it held controlling interests in IRE Financial Corporation (former NYSE) (real estate funds), BankAtlantic (former NYSE) (100-branch bank), Levitt Corporation (former NYSE) (America’s oldest homebuilder), BBX Capital Corporation (Real Estate: multi-family housing, industrial, affordable housing; chocolate/confections; manufacturing) and most recently, it became the holding company for Bluegreen Vacations in 2020. BBX Capital was then spun out into a separate public company in 2020.
Bluegreen Vacations is a top-rated vacation ownership company with headquarters in Boca Raton, Florida. Bluegreen Vacations has a network of 49 Club Resorts and 24 Associate Resorts. The company develops, markets, and operates an impressive selection of high-end vacation ownership resorts in popular destinations including Orlando, Las Vegas, Myrtle Beach, Branson, and many more.
Company Chairman and Chief Executive Officer, Alan Levan, commented:
“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.”
Mark Wang, president and CEO of Hilton Grand Vacations, also commented:
“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. 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, the HGV Ultimate Access experiential platform. I’m particularly excited about the opportunity to enter into a new relationship with Bass Pro Shops and its actively engaged, loyal community of outdoor enthusiasts. We’re confident that our members and guests will all significantly benefit from the combination of these exceptional organizations.”
The closing of the transaction is subject to the approval of the Company’s stockholders and other standard closing conditions, such as regulatory approvals. If all goes to plan, the transaction is set to close during the first half of 2024.
The plan is for Hilton Grand Vacations’ management team to continue to serve in their currency roles in the combined company once the transaction closes. This will also increase HGV’s membership from 525,000 to over 740,000 owners. Its resort portfolio will also grow from 150 properties to nearly 200.
Credit Suisse Securities and Wells Fargo are acting as exclusive financial advisors to the Company, and Stearns, Weaver, and Miller is acting as legal counsel. 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.
Learn more about Hilton Grand Vacations on the company’s website.