Apollo Global Management LLC, owner of Caesars Entertainment Corp., is acquiring Las Vegas-based Diamond Resorts International Inc. for $2.2 billion.
David Palmer, CEO of Diamond Resorts, said the transaction is an “excellent outcome for our shareholders.”
“We are confident that Diamond Resorts will continue to be a vibrant company for our employees, partners and customers, and I am excited about the future of Diamond Resorts,” said Palmer.
The all-cash deal was a premium of 26 percent over Diamond’s closing share price as of June 28, according to a press release from the company. The agreed-on price per share was $30.25 or $2.2 billion total. The number is also a premium of 58 percent as of February 24.
The deal is expected to close over the next few months.
Upon the deal’s closing, Diamond’s common shares will no longer be listed publicly, the company said.
Diamond Resorts has a network of 426 managed and affiliated vacation destinations in 35 countries, including its Polo Towers property in Las Vegas.
Barclays Capital and RBC Capital Markets LLC advised Apollo Global.
The deal followed the closing of a $100 million senior warehouse facility with Capital One Financial Corp.
A press release from Capital One stated that Diamond is one of only two issuers to have received an AA rating from the rating agencies.
According to a company spokesperson for Capital One, Diamond will “use the facility to finance notes receivable generated from the sale of vacation ownership intervals from its resorts properties.”
“This transaction gives us added capacity to continue monetizing our vacation interest notes receivable as our sales platform grows,” said Alan Bentley, Diamond Resort’s chief financial officer.
This is a continuation of facilities Diamond has created.
“Diamond Resorts already had warehouse capacity of $300 million when they approached us,” said Jim Casey, senior vice president and managing director of Capital One’s Vacation Ownership Lending group. “We tailored the revolver to be consistent with the company’s existing facilities, making it easier for them to utilize it.”
Ethel M Chocolates’ factory
store gets $2 million face-lift
Ethel M Chocolates’ factory store in Henderson will be getting an upgrade over the summer in celebration of the brand’s 35th anniversary.
The planned $2 million redesign, set to be completed in the fall, will bring with it an updated look that represents the factory’s original copper kettles and botanical cactus garden.
“The transformation will elevate the factory store experience, while preserving the qualities and tradition that have made Ethel M a memorable part of the community since opening its doors in 1981,” said Oren Young, general manager of Ethel M Chocolates.
The upgraded space will also feature a new tasting room that overlooks the garden and additions to the existing self-guided tour. Visitors should also expect to see an updated café and an additional 7,500 square feet of retail space when the store reopens.
While renovations are underway, Ethel M’s will continue to operate out of a 2,400-square-foot summer pop-up store in front of the existing factory store.
Ethel M Chocolates are manufactured by Mars Chocolate North America.
Eagle Promotions doubles
footprint amid growth
Las Vegas-based Eagle Promotions, a certified minority-owned firm that specializes in custom promotional products and branded apparel, has doubled its footprint in the valley.
To keep up with demand, the firm acquired an adjacent 40,000-square-foot space in June. The company’s combined space now spans 75,000 square feet of office/warehouse space.
“Purchasing the adjacent 40,000 square feet building was an easy decision knowing it would help us reach our vision for growth,” said Mario Stadtlander, co-owner of Eagle Promotions. “Before the expansion, we were bursting at the seams. Now we have adequate space for our nearly 200 employees, including our growing sales team and in-house graphic arts department.”
The expansion has allowed the organization to bring its embroidery work in-house and put the finishing touches on setting up a 14,000 square foot showroom—the largest in the nation, said Stadtlander.
The extra space will also allow Eagle to expand its fulfillment program and its screen printing capabilities, with the addition of extra press and equipment, he added.
According to a release from the company, the facility holds eight screen printing presses with 22 stations. The company has the capability of printing 1,000 shirts per hour and between 20,000 to 40,000 shirts per day. The company is the largest screen printer in Nevada and one of the largest in the nation, according to a press release.