Apollo Global Will Acquire Diamond Resorts for $2.2 Billion

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Apollo Global Management LLC (NYSE:APO), agreed on Wednesday to acquire Diamond Resorts International Inc. (NYSE:DRII) for $2.2 billion. The deal is anticipated to close within the next few months and will be subject to regulatory approvals and customary closing conditions.

Apollo Global Management LLC, a private-equity firm that operates timeshare properties, will pay Diamond Resorts $30.25 per share, a 26% more than Diamond’s Tuesday closing price, and 58% premium over Diamond’s closing price on February 24, when the company announced that it was seeking strategies options. As of December 31, Apollo Global had totally $170 billion asset, including around $11 billion in real estate.

“We look forward to bringing Apollo’s resources to bear and working with the Diamond Resorts team to continue to grow and enhance their business,” David Sambur, an Apollo partner, said in a statement.

Diamond Resorts International Inc., the Las Vegas-based company, began to work on strategic alternatives with Centerview Partners, an investment bank, in February. According to Diamond’s company website, Diamond Resorts owns network of over 420 vacation destinations in 35 countries. After the closure of the acquisition by Apollo Global in the next few months, Diamond Resorts’ shares will not be listed in the stock exchange.

In the acquisition of Diamond Resorts, Barclays Capital and RBC Capital Markets LLC advised Apollo Global and Centerview Partners advised Diamond Resorts. Financing for the purchase is provided by Barclays Capital, Royal Bank of Canada and Jefferies, and debt financing is provided by PSP Investments Credit USA LLC.

Diamond deal is not the only one that Apollo Global made this year. Starting from February, Apollo Global agreed to buy The Fresh Market Inc. (NASDAQ:TFM) for $1.4 billion in cash. The company also acquired Apollo Education Group Inc (NASDAQ:APOL) for $1.1 billion, and purchased ADT Corp (NYSE:ADT) for around $6.9 billion.

As for the whole hospitality industry, several acquisition happened this year. At the beginning of this year, Starwood Hotels & Resorts Worldwide Inc. (NYSE:HOT) was bought by Marriott International Inc. (NASDAQ:MAR) in a $13.6 billion deal. And in April, part of China’s HNA Group acquired Carlson Hotels Inc.

In the mid-day trading, Diamond Resorts increased 23.64% to $29.76 per share, and Apollo Global fell 0.53% to $14.96 per share.

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