Apollo Global to buy US timeshare resort company Diamond Resorts for $2.2 bn

Private equity firm Apollo Global Management yesterday struck a deal to buy US timeshare resort company Diamond Resorts International Inc for about $2.2 billion.

Apollo Global, which has $170 billion assets under management, has offered to pay $30.25 per share in cash, a premium of about 26 per cent to Diamond Resorts' Tuesday closing price.

The proposed acquisition is conditioned upon receiving a minimum of more than 50 per cent of Diamond Resorts' common shares and the receipt of certain regulatory approvals and other customary closing conditions.

The deal is being funded by Barclays, Royal Bank of Canada, and Jefferies. PSP Investments Credit USA has also provided debt financing commitments.

Diamond Resorts' common shares will be de-listed after the closure of the acquisition by Apollo Global.

Las Vegas-based Diamond Resorts had in February hired Centerview Partners as financial adviser to explore strategic alternatives.

It has a network of more than 420 vacation destinations located in 35 countries throughout the continental US, Hawaii, Canada, Mexico, the Caribbean, South America, Central America, Europe, Asia, Australasia and Africa.

David Palmer, CEO of Diamond Resorts, said, ''We have built a solid business focused on operational excellence, hospitality, and customer satisfaction, the result of which has been stellar financial results and strong cash generation.''

''We are tremendously excited about the opportunity for our funds to acquire Diamond Resorts,'' said David Sambur, partner at Apollo. ''Stephen, David, the management team, and Diamond's more than 8,000 team members have built an amazing customer-centric business with a great reputation that delivers award winning hospitality experiences at great value.''

Apollo has always shown a keen interest in the hospitality and leisure industry. It is one the largest stakeholder in Norwegian Cruise Line Holdings and Caesars Entertainment Corp.

Last year, the New York City-based private-equity firm sold Great Wolf Resorts to Centerbridge Partners.