Hilton Grand Vacations to buy Bluegreen Vacations for a more-than 100% premium

Hilton Grand Vacations Inc.
HGV,
-8.05%
announced Monday an agreement to buy Bluegreen Vacations Inc.
BVH,
+106.78%
in cash deal valued at $1.5 billion, including debt. Under terms of the deal, Hilton Grand Vacations (HGV) will pay $75 in cash for each Bluegreen share outstanding, which represents a 111.1% premium over Friday’s stock closing price of $35.52, and implies a market capitalization for Bluegreen of about $1.28 billion. Bluegreen’s stock rocketed 105.4% in the premarket, while HGV shares sank 8.6%. HGV said the deal, which is expected to close during the first half of 2024, will generate about $100 million in synergies, and will expand HGV’s membership base to more than 740,000 from more than 525,000. Separately, HGV announced the signing of an exclusive 10-year marketing agreement with outdoor recreation products retailer Bass Pro Shops, as Bluegreen is the official vacation ownership partner of Bass Pro Shops. Bluegreen’s stock has gained 0.4% over the past three months and HGV shares have dropped 16.2%, while the S&P 500
SPX,
+0.18%
has slipped 2.7%.