Cerberus Capital to acquire timeshare operator Silverleaf Resorts

DALLAS Silverleaf Resorts Inc., a developer and operator of timeshare resorts, has agreed to be acquired by SL Resort Holdings Inc., an affiliate of Cerberus Capital Management LP.

Cerberus will pay US$2.50 per share, a premium of about 75% from Silverleaf’s stock price as of Thursday. The transaction has been approved by Silverleaf’s board of directors, which recommends that Silverleaf shareholders approve the transaction. Cerberus will provide equity financing for the full amount of the merger consideration.

“Cerberus is pleased to be investing in a company with an outstanding management team and proven track-record of success in the vacation ownership industry,” says Timothy F. Price, a Cerberus managing director. “The family of resorts under the Silverleaf banner has a long history of providing members with convenient, high-quality vacation experiences at affordable prices. We look forward to supporting the company’s management team and dedicated employees as they work to ensure that the company’s members continue to enjoy great vacations for years to come.”

Gleacher & Company Securities Inc. is advising Dallas-based Silverleaf on the proposed merger.

Silverleaf CEO Robert E. Mead has agreed to vote shares beneficially owned by him, representing 24.5% of the outstanding shares of Silverleaf, in favor of the transaction.