Summary
Marriott International, Inc. has officially completed its acquisition of Starwood Hotels & Resorts Worldwide, Inc. as of September 23, 2016. This significant transaction, initially announced in November 2015 and amended in March 2016, unites two major players in the hospitality industry, creating a much larger global lodging company. The acquisition was structured as a merger where Starwood shareholders received $21.00 in cash and 0.800 shares of Marriott common stock for each share of Starwood stock they held. This deal is expected to enhance Marriott's portfolio and global reach. In connection with the merger, Marriott's board of directors has been expanded to accommodate former Starwood directors. Additionally, the company has adjusted its credit facilities, increasing its available commitments. Marriott has also announced its intention to repurchase certain outstanding senior notes issued by Starwood. Investors should note that full financial statements and pro forma information related to the acquisition will be filed in an amendment to this report at a later date.
Key Highlights
- 1Marriott International has successfully completed the acquisition of Starwood Hotels & Resorts Worldwide, Inc.
- 2Starwood shareholders will receive $21.00 in cash and 0.800 shares of Marriott common stock per Starwood share.
- 3The acquisition creates a significantly larger global lodging company with an expanded portfolio.
- 4Three new directors from Starwood have been appointed to Marriott's Board of Directors.
- 5Marriott's credit facility commitment increased from $2.50 billion to $4.00 billion upon completion of the transaction.
- 6Marriott is offering to repurchase outstanding senior notes of Starwood.
- 7Detailed financial statements and pro forma information will be provided in a future filing amendment.