As consideration for the acquisition, Starwood shareholders receive approximately 72.4 million of ILG shares valued at $14.24 per share based on the closing price of ILG shares on May 11, 2016, or approximately 0.4309 shares of ILG stock for every Starwood share owned, and ILG paid approximately $123 million in cash to Starwood, subject to post-closing adjustment.
Interval Leisure Group, Inc. (ILG) (NASDAQ:IILG) has completed the previously announced acquisition of Vistana Signature Experiences, Inc from Starwood Hotels & Resorts Worldwide, Inc. (NYSE:HOT). As consideration for the acquisition, Starwood shareholders receive approximately 72.4 million of ILG shares valued at $14.24 per share based on the closing price of ILG shares on May 11, 2016, or approximately 0.4309 shares of ILG stock for every Starwood share owned, and ILG paid approximately $123 million in cash to Starwood, subject to post-closing adjustment.
Craig M. Nash, chairman, president, and CEO of ILG, said, “Today is a significant milestone for ILG and Vistana, as we merge two companies that share a passion to deliver exceptional vacations to our owners, members, and guests. With a portfolio that includes the worldwide exclusive rights in vacation ownership to the Sheraton®, Westin®, and Hyatt® brands, as well as a strong financial profile, we are positioned to continue to execute on our strategic vision.”
Nash added, “It is a great pleasure to welcome the 5,000 dedicated Vistana associates to the ILG family. With our mutual commitment to vacation ownership, I am confident that the combined company is poised to create more value for our stockholders.”
ILG now has an expansive collection of more than 250 managed resorts, encompassing over 550,000 owners and approximately 10,000 employees.
Thomas B. Mangas, Starwood’s chief executive officer, stated, “With the completion of this transaction, we’ve formed one of the industry’s largest and most respected providers of world-class vacation experiences. We’re thrilled by the opportunities this will create for our guests, partners, and associates, and the value this will generate for our investors. This transaction also represents another important step toward the closing of our merger with Marriott, which remains on track for mid-year.”
In connection with the acquisition, Vistana has entered into an exclusive, 80-year global license agreement with Starwood for the use of the Westin® and Sheraton® brands in vacation ownership. In addition, ILG has the non-exclusive license for the existing St. Regis® and The Luxury Collection® vacation ownership properties.
Stephen Williams, Vistana’s chief operating officer, said, “We look forward to bringing together our talented and experienced associates as we seamlessly integrate our two companies. Our owners will benefit from continued relationships with Westin®, Sheraton®, and SPG®, and receive even more of the valuable benefits and award-winning branded experiences that they’ve come to know and enjoy.”