Diamond Resorts International announced today that it has agreed to be acquired by affiliates of Apollo Global Management LLC for $30.25 per share or about $2.2 billion.
The all-cash offer represents a premium of approximately 26 percent over Diamond Resorts’ closing share price on June 28, 2016, and a premium of approximately 58 percent over the closing share price on February 24, 2016, the day of Diamond Resorts’ announcement that it was exploring strategic alternatives.
Diamond Resorts manages more than 420 resort properties in 35 countries and sells timeshares through its Vacations for Life program.
“This transaction is an excellent outcome for our shareholders,” David Palmer, Diamond Resorts’ CEO, said in a statement. “Apollo values the culture of hospitality and customer service that is the legacy of our founder and chairman Stephen J. Cloobeck and instilled in our organization. We are confident that Diamond Resorts will continue to be a vibrant company for our employees, partners and customers, and I am excited about the future of Diamond Resorts.”
Apollo is equally as excited about the deal.
“We are tremendously excited about the opportunity for our funds to acquire Diamond Resorts,” said David Sambur, partner at Apollo. “Stephen, David, the management team, and Diamond’s more than 8,000 team members have built an amazing customer-centric business with a great reputation that delivers award-winning hospitality experiences at great value. We look forward to bringing Apollo’s resources to bear and working with the Diamond Resorts team to continue to grow and enhance their business.”
The transaction will be completed through an all-cash tender offer. There is no financing condition to completion of the tender offer and the merger. Financing is being provided by Barclays, Royal Bank of Canada and Jefferies. PSP Investments Credit USA LLC is also providing debt financing commitments.
The transaction is currently expected to close over the next few months. If completed, the transaction will result in the company becoming a privately held company, and Diamond Resorts’ common shares will no longer be listed on any public market.
Apollo has announced three other acquisitions valued at more than $1 billion since the start of February. The firm agreed in March to buy grocer The Fresh Market for about $1.4 billion in cash, following the $1.1 billion buyout of Apollo Education Group and the purchase of home-security monitoring company ADT Corp. for about $6.9 billion.