Hilton Grand Vacations (NYSE:HGV) announced that it has completed the previously disclosed $1.5B acquisition of Bluegreen Vacations (BVH). The transaction is expected to broaden the company’s offerings, customer reach and sales locations, creating a premier vacation ownership and experiences company.
Hilton Grand Vacations (HGV) CEO Mark Wang noted that the combination of the two timeshare operators adds approximately 200,000 members for HGV and expands the resort portfolio to nearly 200 properties in 14 new geographies and eight new states.
“The addition of exciting new outdoor destinations and world-class strategic partnerships, including Bass Pro Shops and NASCAR, transforms our business from a leader in the vacation ownership industry to a premier vacation ownership and experiences company that builds on our legacy of adventure, innovation and exploration.”
In addition to the strategic benefits anticipated from scale and expanded lead generation, the combination is also anticipated to unlock additional upside by leveraging the infrastructure developed as part of HGV’s recent business evolution, including the successful launch of its Hilton Vacation Club brand, the expanded access provided through its HGV Max membership and the HGV Ultimate Access experiential events platform.
In terms of financials, the transaction was noted to be adjusted free cash flow accretive and is expected to generate approximately $100M in run-rate cost synergies in the first 24 months following close. The combination is also said to support higher free cash flow conversion and enhances HGV’s base of recurring EBITDA.