Marriott Vacations To Acquire ILG In Cash And Stock Deal - Quick Facts

(RTTNews) - Marriott Vacations Worldwide Corp. (VAC) and ILG (ILG) announced 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. ILG shareholders will receive $14.75 in cash and 0.165 shares of MVW common stock for each ILG share. Following the close of the transaction, ILG shareholders will own approximately 43% of MVW's common shares on a fully-diluted basis, based on the number of MVW common shares outstanding.

The transaction is expected to be accretive to MVW's adjusted earnings per share within the first full year after close. The company expects at least $75 million of annual run-rate cost savings within two years following the close of the transaction.

Qurate Retail, Inc. has entered into a voting agreement with ILG in support of the transaction. Following the close of the transaction, the combined company will trade on the NYSE under ticker symbol VAC. Marriott Vacations Worldwide's President and Chief Executive Officer, Stephen Weisz, and its Financial and Administrative Officer, John Geller, will continue to serve in their roles following the close of the transaction.

The combination will significantly enhance and diversify MVW's cash flows. MVW expects to pay a pro-forma annual dividend of $1.60 per share following the close of the transaction.