Wyndham Worldwide, Parsippany, New Jersey, announced on Friday that it bought the privately held Shell Vacations LLC and its subsidiaries in a US$255 million deal.
The purchase price for the equity of Shell Vacations LLC, Chicago, was US$102 million in cash. The acquisition also includes US$153 million of debt, which is primarily related to consumer loan receivables.
Under the terms of the agreement, Wyndham Vacation Ownership assumes property management operations at 19 Shell resort locations in Hawaii, California, Arizona, Nevada, Oregon, Wisconsin, Texas, New Hampshire and Canada. WVO will now also operate Shell Vacations Club, a points-based reservation and exchange system.
“This tuck-in acquisition is immediately accretive to earnings and generates meaningful cash flow as well as a healthy rate of return. With strong fee-for-service revenues, this acquisition is consistent with our capital-light strategy,” said Stephen Holmes, Wyndham Worldwide chairman and CEO.