HGV - Hilton Grand Vacations Closes Its Acquisition Of Bluegreen Vacations

2024-01-24 05:34:30 ET

Summary

• Hilton Grand Vacations has finalized its acquisition of Bluegreen Vacations for $1.5 billion, adding 48 resorts and 218k members to its portfolio.
• The merger is expected to result in $100 million in annual savings and increase HGV's free cash flow and EBITDA figures.
• The acquisition gives HGV a larger geographical distribution, more diversity of assets, and access to a younger demographic of timeshare members.

Hilton Grand Vacations ( HGV ) is a timeshare company that was spun off from Hilton Worldwide Holdings ( HLT ) in 2017 but is allowed to use Hilton names and many of its properties with a special licensing deal. The company recently announced that it finalized the highly anticipated acquisition of Bluegreen Vacations ( BVH ) for a sum of $1.5 billion including BVH's net debt. The deal was closed using cash and HGV had to borrow money to pay this including $900 million of senior secured notes due in 2032 with an interest rate of 6.625%....

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