ILG will merge with Marriott Vacations Worldwide in a $4.7bn cash-and-stock deal. The acquisition will create the largest portfolio of luxury timeshare vacation resorts with a combined revenue of $2.9 bn and more than 100 vacation properties around the world. ILG shareholders will receive $14.75 in cash and 0.165 shares of Marriott Vacations Worldwide stock for each ILG share. ILG will add more than 250,000 owners to Marriott, bringing the combined company to about 650,000 owners and more than 20,000 owner units.
Once approved by the shareholders of both companies, Marriott will be the exclusive licensee of 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. The companies expect the deal to result in $75m of annual savings within two years. Interval International, ILG’s leading exchange business, will continue to be based in Miami.
