Marriott Vacations has agreed to a $5.1bn deal to purchase timeshare operator ILG in a cash-and-stock transaction that will create one of the largest luxury holiday operators.
ILG shareholders will receive $14.75 in cash and 0.165 shares of Marriott Vacations for each share in the company, worth $4.7bn. The deal values ILG at roughly $5.1bn including the company’s net debt.
Marriott Vacations said the combined group — which will operate vacation clubs under the Marriott, Ritz-Carlton, Sheraton and Westin brand names — would have revenues of $2.9bn and hoped to find cost savings of $75m a year within two years of the deal completing.
“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 Marriott Vacations and ILG shareholders,” said Stephen Weisz, chief executive of the buyer.
Shares in ILG rose more than 5 per cent in pre-market trading in New York. Marriott Vacations’ shares slipped marginally.