Wired News – Marriott Vacations to Acquire ILG, Creating One of the Largest Luxury Timeshare Company in the US

LONDON, UK / ACCESSWIRE / May 2, 2018 / Active-Investors.com has just released a free research report on Marriott Vacations Worldwide Corp. (NYSE: VAC) (”MVW”). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=VAC as the Company’s latest news hit the wire. On April 30, 2018, the Company disclosed that it has signed a definitive agreement to acquire all outstanding shares of ILG (NASDAQ: ILG). The cash plus stock deal has an implied equity value of approximately $4.7 billion. The acquisition is expected to create one of the largest luxury timeshare vacation resorts company in the US. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Marriott Vacations Worldwide and ILG most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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www.active-investors.com/registration-sg/?symbol=ILG

Comments from Management

Commenting on the acquisition of ILG, Stephen P. Weisz, President and CEO 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.”

Craig M. Nash, Chairman, President, and CEO of ILG, added:

”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.”

Details of the Acquisition

As per the terms of the agreement, MVW has offered to pay ILG’s shareholders $14.75 in cash and 0.165 MVW’s shares for each ILG’s share. Qurate Retail, Inc., one of the major investors in ILG, has signed an agreement to vote in favor of the deal. The deal has been approved by the Board of Directors of both companies. The transaction is expected to close in H2 2018 subject to receipt of regulatory and shareholders’ approvals and fulfilment of closing conditions.

MVW has lined up financial commitments from J.P. Morgan and BofA Merrill Lynch to finance the deal, however, the completion of the deal is not contingent on the financing.

Once the transaction is completed, ILG’s shareholders will own approximately 43% stake in MVW on a fully-diluted basis. On completion of the deal, the merged entity will operate as MVW and its shares will continue to trade on NYSE under the ticker “VAC”. The merged company will be headquartered in Orlando, Florida and it will continue to maintain significant operating presence in Miami.

The leadership team of the merged company will have Stephen Weisz as the President and CEO, while John Geller will be the CFO and Administrative Officer. The Board of MVW will expand from eight to ten members on completion of the merger and the two new members will be from the current ILG’s Board. William Shaw will continue as the Chairman of the Board of the merged company.

Strategic Benefits of the Acquisition

The merger of MVW and ILG will create one of the leading global luxury vacation ownership company that will have approximately 650,000 timeshare owners, seven upper-upscale and luxury brands, over 100 vacation properties and more than 20,000 vacation ownership units worldwide. MVW will be able to expand to new markets like Europe, Mexico, and Caribbean where ILG has properties. The deal will allow MVW to diversify its upper-upscale brand management with the Hyatt Residence Club properties.

MVW and ILG have signed agreement with Marriott International which will have exclusive access for vacation ownership to the Marriott Rewards, Starwood Preferred Guest, and Ritz-Carlton Rewards loyalty programs. These loyalty programs have over 100 million members who will be brought under a single loyalty program by early 2019.

MVW will diversify its revenues and move into a business model which has most of its revenues coming from recurring and fee-based revenue streams. ILG’s network has two million members and over 3,200 resorts viz., Interval International, Vistana Signature Network, Hyatt Residence Club, and Trading Places International.

MVW will be able to add new revenue streams because of the deal and would greatly benefit from ILG’s highly profitable exchange networks and resort management business. MVW will also be able to cater to the corporate members who own over 50% of ILG’s timeshares and will provide a steady revenue even during lean periods. Additional revenues streams from ILG is expected to contribute $2.9 billion to the total revenue of the merged company in FY17. The strong cash flows from the diversified revenue streams will enable the merged company to maintain its financial flexibility and allow it to plan for strategic acquisitions to fuel its growth. The increased cash flow will also add value to shareholders. The merged company is expected to have an adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) of $737 million in FY17 on a pro-forma basis.

MVW has returned $775 million to its shareholders via dividends and share buybacks in the last four years. The Company plans to pay an annual dividend of $1.60 per share on a pro-forma basis once it completes the deal.

MVW expects the acquisition to be immediately accretive to its earnings and cash flows within one year of closing the deal. The Company also expects to realize annual run-rate cost savings of at least $75 million within two years of closing the deal.

About ILG

Miami, Florida-based ILG is a leading provider of professionally delivered vacation experiences and the exclusive global licensee for the Hyatt®, Sheraton®, and Westin® brands in vacation ownership. The Company offers its owners, members, and guests access to an array of benefits and services as well as world-class destinations through its international portfolio of resorts and clubs. The Company’s businesses include Aqua-Aston Hospitality, Hyatt Vacation Ownership, Interval International, Trading Places International, Vacation Resorts International, VRI Europe, and Vistana Signature Experiences. It also owns and manages Hyatt Residence Club program through its subsidiaries. The Company has offices in over 15 countries and employs over 10,000 associates.

About Marriott Vacations Worldwide Corp.

Orlando, Florida-based MVW is a leading global pure-play vacation ownership Company, offering a diverse portfolio of quality products, programs, and management expertise with more than 65 resorts. The Company was earlier known as Marriott Vacation Club International which was a division of Marriott International. The Company’s brands include Marriott Vacation Club, The RitzCarlton Destination Club, and Grand Residences by Marriott. The Company has over 11,500 associates.

Stock Performance Snapshot

May 01, 2018 – At Tuesday’s closing bell, Marriott Vacations Worldwide’s stock rose 1.47%, ending the trading session at $124.41.

Volume traded for the day: 2.08 million shares, which was above the 3-month average volume of 225.42 thousand shares.

Stock performance in the past twelve-month period – up 11.16%

After yesterday’s close, Marriott Vacations Worldwide’s market cap was at $3.36 billion.

Price to Earnings (P/E) ratio was at 21.35.

The stock has a dividend yield of 1.29%.

The stock is part of the Services sector, categorized under the Resorts & Casinos industry. This sector was up 0.2% at the end of the session.

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