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Hilton Grand Vacations (HGV) Expands With Bluegreen Buyout

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Hilton Grand Vacations Inc. (HGV - Free Report) has successfully concluded its acquisition of Bluegreen Vacations, marking a significant milestone in its quest for market dominance. The all-cash transaction, valued at approximately $1.5 billion, reinforces HGV's position as a premier vacation ownership and experiences company.

With the addition of Bluegreen Vacations, HGV welcomes around 200,000 new members and broadens its resort portfolio to nearly 200 properties across 14 new geographies and eight states.

Mark Wang, president and CEO of Hilton Grand Vacations, expressed excitement about the synergies between these two businesses, emphasizing the potential for expanded outdoor destinations and world-class partnerships.

This acquisition leverages HGV's recent business evolution, capitalizing on the success of the Hilton Vacation Club brand and the HGV Max membership. This strategic move aims to provide improved access and enriched experiential events for members.

Investors can anticipate a positive impact on adjusted free cash flow, with an estimated $100 million in run-rate cost synergies expected within the first 24 months post-closure. This strategic move positions HGV for higher free cash flow conversion and reinforces its recurring EBITDA base, signaling a compelling investment opportunity in the evolving vacation ownership industry.

The company carries a Zacks Rank #2 (Buy). In the past three months, shares of the company have gained 10.5% compared with the industry’s growth of 16.6%.

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The Zacks Consensus Estimate for DKNG’s 2024 sales and EPS suggests 27.5% and 84.9% growth, respectively, from the year-earlier levels.

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