Hilton Grand Vacations has entered into a definitive agreement to acquire Bluegreen Vacations for $75 per share in an all-cash transaction, representing total consideration of approximately $1.5 billion, inclusive of net debt. The combination will broaden HGV’s offerings, customer reach and sales locations. Other terms were not disclosed.
The deal increases HGV’s membership base from more than 525,000 to more than 740,000 and its resort portfolio from 150 to nearly 200 properties in 14 new geographies and eight new states.
“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,” HGV President and CEO Mark Wang said in a statement. “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 team members, shareholders, members and consumers will all significantly benefit from the combination of these exceptional organizations.”
Bluegreen Vacations currently has a marketing presence in the majority of Bass Pro Shops and owns 51 percent of a joint venture with Bass Pro Shops that includes four outdoor-themed resorts. The acquisition is also expected to expand and diversify HGV’s lead flow through Bluegreen Vacations' partnerships, including an exclusive marketing agreement with Bass Pro Shops. Expanding on Bluegreen Vacations' existing relationship, HGV has signed a new 10-year exclusive marketing agreement with Bass Pro Shops.
Bass Pro Shops Partnership
In addition to the announced acquisition of Bluegreen Vacations, HGV signed an exclusive 10-year marketing agreement with Bass Pro Shops, the outdoor retail and conservation company. This new partnership builds on Bluegreen Vacations' success as the official vacation ownership partner of Bass Pro Shops and includes the existing joint venture encompassing four outdoor-themed resorts.
“For the past 51 years at Bass Pro Shops, we’ve been blessed to build a team of great people who are passionate about the outdoors and serving customers," Bass Pro Founder Johnny Morris said. "We share a bond with them and we’re always looking for ways to add joy and excitement to their free time. Today we’re announcing one of the biggest commitments we’ve ever made to better serve our customers. Our new partnership with Hilton Grand Vacations is one of the most exciting and important in our history! It will give both of our legendary brands the ability to introduce many more people to the great outdoors and happy memories they will never forget."