Coming on the heels of Hilton Grand Vacations’ recent acquisition of Diamond Resorts, HGV has just declared an agreement to acquire Bluegreen Vacations this morning, in an all-cash transaction valued at approximately $1.5 billion, inclusive of net debt. This acquisition is set to broaden HGV’s portfolio, customer base, and sales locations, thereby solidifying its position as a premier vacation ownership and experiences company.
Expansion & Diversification Through Acquisition
The acquisition allows HGV to diversify and expand its lead flow courtesy of Bluegreen Vacations’ strategic partnerships. Notably, a new 10-year exclusive marketing agreement with America’s Premier Outdoor and Conservation Company, Bass Pro Shops, which boasts over 220 million customers annually. Bluegreen Vacations also has a 51% stake in a joint venture with Bass Pro Shops that includes four outdoor-themed resorts.
Bluegreen’s Extensive Resort Portfolio
Bluegreen Vacations currently manages more than 60 resorts across popular destinations in the U.S. and Caribbean. The company operates a flexible, points-based vacation ownership plan serving approximately 221,000 owners. This extensive network of resorts presents a valuable addition to Hilton Grand Vacations’ portfolio.
Below you can find a list of the properties that are currently a part of BlueGreen:
U.S. Destinations
International Destinations
Integration Of Bluegreen Resorts Into Hilton’s Offerings
At this point, it is unclear how Hilton Grand Vacations plans to integrate Bluegreen’s resorts into its existing offerings. Given the breadth and diversity of Bluegreen’s resort locations, Hilton has the opportunity to significantly expand its HGV Max product, but time will tell whether these resorts will be fully integrated or left as a separate timeshare product entirely.
While the specific details regarding the integration process and timeline have yet to be announced, this acquisition will be a noteworthy development to watch as it unfolds in the coming months. Be sure to stay tuned to the A Timeshare Broker blog, to stay up-to-date on all the future announcements to come.
Harnessing Synergies & Infrastructure
HGV aims to maximize its recent strategic investments, such as the successful launch of the Hilton Vacation Club brand, expanded access via its HGV Max membership, and the HGV Ultimate Access experiential events platform. The integration of Bluegreen Vacations’ outdoor-themed properties and partnerships, including Bass Pro Shops and NASCAR, will further enrich HGV’s offerings and extend its customer reach.
Financial Benefits & Projections
The acquisition is projected to realize approximately $100 million in cost synergies within the first 24 months post-acquisition. HGV has previously demonstrated a strong track record in delivering deal cost synergies. The merged entity is also expected to generate future revenue synergies between $75 million and $100 million. These projections will bolster higher free cash flow conversion and a steady recurring EBITDA base for HGV.
Details Of The Transaction
Subject to customary closing conditions and regulatory approvals, the transaction is slated to close during the first half of 2024. The current HGV management team will persist in their roles post-acquisition. Financing commitments for the transaction have been procured from Bank of America, Deutsche Bank, Barclays, and J.P. Morgan.
Advisors & Conference Call
HGV will conduct a conference call for analysts and investors to discuss the acquisition and its third-quarter results. BofA Securities serves as the exclusive financial advisor for HGV, with legal counsel provided by Alston & Bird LLP, Simpson Thacher & Bartlett LLP, and Foley & Lardner LLP. Credit Suisse and Wells Fargo are acting as financial advisors for Bluegreen Vacations, with Stearns, Weaver, Miller serving as legal counsel.
Wrapping Up
In conclusion, the acquisition of Bluegreen Vacations by Hilton Grand Vacations marks a significant development in the timeshare industry. This $1.5 billion transaction not only expands HGV’s portfolio and customer base but also paves the way for diversification through strategic partnerships.
However, the specifics of integrating Bluegreen’s extensive resort network into HGV’s current offerings remain to be detailed. This move is part of an industry-wide trend of consolidation and comes at an exciting time in the timeshare sector, which continues to evolve and grow. As the industry navigates these changes, the focus remains on enhancing customer experiences and value propositions.
