NEW YORK, April 1 (UPI) -- Real estate and travel company Cendant Corp. said it
signed a definitive agreement to acquire timeshare operator Trendwest Resorts Inc. in a stock and cash deal valued at approximately $894 million.
Cendant also said it has entered into a definitive agreement to acquire approximately 90 percent of the outstanding shares of Trendwest from JELD-WEN and certain stockholders. JELD-WEN owns about 81 percent of Trendwest.
Cendant said it will issue 48.3 million shares and assume approximately $74 million of Trendwest net debt, which will be repaid.
Trendwest, through WorldMark, the Club, and WorldMark South Pacific Club, markets, sells and finances vacation ownership interests.
Cendant said the deal will provide its timeshare operations with a second national brand and will accelerate geographic diversification.
Cendant's existing timeshare operations, Fairfield Resorts and Equivest, are principally located in the eastern United States; Trendwest's 48 properties are located primarily in the western United States, British Columbia, Mexico, Hawaii and the South Pacific.
Under the terms of the agreements, Trendwest stockholders will receive between 1.297 and 1.486 shares of Cendant common stock per Trendwest share through a tax-free exchange of Cendant common stock.
The deal is expected to be completed in two steps. The first step, which is the purchase of 90 percent of the outstanding shares from JELD-WEN and certain other stockholders, is expected to close no later than May 1 if all customary regulatory and closing conditions have been satisfied. The second step, the purchase of the remaining 10 percent of the outstanding shares, will close upon the effectiveness of the registration statement on Form S-4 relating to the issuance of Cendant stock to such holders.
Stephen P. Holmes, chairman of Cendant's Hospitality Division, said, "Trendwest geographically expands our footprint in the vacation ownership business by giving us a strong presence in the western United States and Asia/Pacific regions.
"We plan to maximize growth by maintaining both Fairfield and Trendwest brands," he added.