Apollo Global Nears Deal to Buy Diamond Resorts

Apollo Global Management LLC is nearing a deal to buy Diamond Resorts International Inc., according to people familiar with the matter.

Terms of the expected deal couldn't be learned, but with a market value of $1.6 billion, the resort manager could fetch a price in the neighborhood of $2 billion.

Diamond, based in Las Vegas, announced in February that it was working with investment bank Centerview Partners on strategic alternatives. The company has a network of more than 420 vacation destinations in 35 countries, according to its website.

It has been a busy stretch for hospitality mergers and acquisitions. Earlier this year, Marriott International Inc. agreed to buy hotel chain Starwood Hotels & Resorts Worldwide Inc. for $13.6 billion. China's Anbang Insurance Group Co. tried to break up the deal by making its own offer, costing Marriott $1 billion extra, but Anbang ultimately walked away. In April, a unit of China's HNA Group announced a deal to buy Carlson Hotels Inc., which owns Radisson and Country Inns & Suites Chains.

Apollo has a history of big bets on hospitality and leisure companies. The private-equity firm sold Great Wolf Resorts Inc. to Centerbridge Partners LP last year and holds large stakes in Norwegian Cruise Line Holdings Ltd. and Caesars Entertainment Corp., after participating in the 2008 leveraged buyouts of the two companies and later taking them public. Caesars, like Diamond Resorts, is based in Las Vegas and a major employer there.

Apollo has been one of the most active private-equity firms this year. It bought specialty grocer The Fresh Market Inc. for $1.4 billion in April and plans to buy University of Phoenix operator Apollo Education Group Inc. for $1.14 billion—big discounts to the companies' market values a year ago.

Write to Matt Jarzemsky at matthew.jarzemsky@wsj.com and Dana Mattioli at dana.mattioli@wsj.com

(END) Dow Jones Newswires

June 29, 2016 09:05 ET (13:05 GMT)

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