Hilton Grand Vacations has entered into an agreement to acquire Diamond Resorts International, Inc. The combined company will have 720,000 owners and 154 resorts.
Hilton Grand Vacations Inc. (HGV) has entered into an agreement to acquire Diamond Resorts International, Inc. from funds managed by affiliates of Apollo Global Management, Inc., funds managed by affiliates of Reverence Capital Partners, and other Diamond stockholders. The stock-based transaction has an equity value of approximately $1.4 billion. The Apollo funds and other Diamond stockholders will receive 34.5 million shares of HGV common stock (subject to adjustments).
HGV is one of Hilton‘s world-class global brands and a leader in vacation ownership with a reputation for consistently exceptional service. Diamond is the world’s largest independent timeshare operator, with 92 leisure resorts and nearly 400,000 owners. The acquisition combines these with HGV’s 62 upscale and luxury properties and more than 325,000 owners to create a premier vacation ownership company with the broadest offering in the industry.
“I’m excited to announce our transformational agreement to add Diamond Resorts to the Hilton Grand Vacations family, accelerating our next phase of growth,” Mark Wang, president and CEO of Hilton Grand Vacations, said in a statement. “This strategic combination will leverage the strengths of each company, positioning us to drive significant Net Owner Growth while enhancing efficiencies of scale and generating significant shareholder value. Diamond’s extensive regional, drive-to network of resorts and expanded demographics uniquely complement HGV’s best-in-class lead generation, world-class hospitality, and premier destinations backed by the strength of the Hilton brand. For our valued team members, owners and guests, this combination creates new opportunities to provide exciting destinations and memorable vacation experiences while continuing to provide exceptional levels of service.”
“Through this agreement, HGV and Diamond will create a new global standard of vacation ownership hospitality,” said Mike Flaskey, CEO of Diamond Resorts. “Together, we will expand Diamond’s unique events and concert platform and deliver the broadest range of world-class experiences available in the industry, providing our members and owners with additional flexibility, unforgettable vacations and experiences of a lifetime. We are thrilled to join the HGV family and look forward to achieving new heights of excellence.”
The transaction expands and diversifies HGV’s existing resort portfolio of beach, attraction-based, and urban markets into more than 20 new markets in outdoor, desert and ski locations. The combined company will have 720,000 owners, 154 resorts, and 48 sales centers. A broader range of pricing and product options will widen customer reach, enhancing alignment with the existing 112 million Hilton Honors members.
The transaction is expected to close in the summer of 2021, subject to customary closing conditions and regulatory approvals.
HGV’s management team, including President & Chief Executive Officer Mark Wang, Chief Financial Officer Dan Mathewes, and Chief Operating Officer Gordon Gurnik, will continue to serve in their current roles.
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