Diamond Resorts to Acquire Bluegreen Corp.
- Jul 22, 2008
Resort giant Diamond Resorts International has inked a letter of intent to acquire Bluegreen Corp., which also specializes in resort and vacation properties. The letter cited a price of $15 a share, which would value the deal at about $500 million, not counting Bluegreen’s outstanding debt. Under the terms of the letter, Bluegreen has granted Diamond Resorts an exclusive right of negotiation through September 15, during which time Diamond Resorts will conduct more extensive due diligence. According to Bluegreen, the offer was unsolicited, but Bluegreen had been preparing for an eventual sale in any case. Boca Raton, Fla.-based Bluegreen Corp. markets vacation ownership plans that provide access to over 40 resorts and an exchange network of over 3,700 resorts and other vacation experiences, such as cruises and hotel stays. Subsidiary Bluegreen Communities has sold over 56,300 planned residential and golf community homesites since 1985. Las Vegas-based Diamond Resorts has 110 resorts properties in the continental United States and Hawaii, Canada, Mexico, the Caribbean and Europe, with more than 360,000 owners and members. In April 2007, the company acquired Sunterra Corp. for about $750 million.