Marriott Vacations Worldwide to acquire ILG
Marriott Vacations Worldwide Corporation (MVW) and ILG have entered into a definitive agreement under which MVW will acquire all of the outstanding shares of ILG in a cash and stock transaction with an implied equity value of approximately $4.7 billion.
Under the terms of the agreement, ILG shareholders will receive $14.75 in cash and 0.165 shares of MVW common stock for each ILG share.
ILG is a leading provider of premier vacation experiences with more than 40 properties and over 250,000 owners in its Vistana Signature Experiences and Hyatt Vacation Ownership portfolios, as well as exchange networks that comprise nearly two million members and more than 3,200 resorts worldwide.
As a combined entity, MVW and ILG will be a leader in the vacation experiences industry with significant scale and an expanded presence in key leisure destinations.
The combined company will be the global licensee of seven upper-upscale and luxury vacation brands, including Marriott Vacation Club, Grand Residences by Marriott, Ritz-Carlton Destination Club, Sheraton Vacation Club, Westin Vacation Club, St. Regis Residence Club, and Hyatt Residence Club.
It will also have exclusive access for vacation ownership to the Marriott Rewards, Starwood Preferred Guest and Ritz-Carlton Rewards loyalty programmes for its six Marriott vacation ownership brands. In terms of its Hyatt business, the combined company will have rights to develop, market and sell under the Hyatt Vacation Ownership programmes, including access to the almost 10 million members of the World of Hyatt loyalty platform.
In addition, the move is set to strengthen MVW’s vacation properties’ affiliation with ILG’s exchange networks, including Interval International.
Stephen P. Weisz, president and chief executive officer of Marriott Vacations Worldwide, said: “This transaction will combine two of the premier global vacation ownership companies to create a more diversified company with significantly enhanced marketing potential and scale to drive sales growth and value for both MVW and ILG shareholders.
“With ILG, we will bring together six world-class vacation ownership brands under one licensing relationship with Marriott International, which will enable us to leverage high-value marketing and sales channels, including those provided by Marriott International’s platforms, and enhance the benefits of our access to Marriott International’s loyalty programmes, call transfer and hotel linkage programmes.
“We will also diversify our vacation ownership business with the addition of the Hyatt Vacation Ownership platform, providing exciting growth opportunities outside of the Marriott and Vistana platforms.”
Craig M. Nash, chairman, president and chief executive officer of ILG, said: “We are very pleased to achieve this outcome for shareholders, as it provides them with immediate and compelling cash value and the opportunity to meaningfully participate in the long-term growth potential of a powerful combined company.
“The strategic rationale for this transaction is clear. Combining these two highly complementary businesses will create an industry leader with enhanced scale and a broader product portfolio that will have great benefits for our members, owners and guests.
“MVW associates share the same values and goals that we have championed for so long, and we are confident that MVW and ILG are as strong a cultural fit as they are strategic.”