Cendant Buys 90% of Trendwest for $1B

NEW YORK CITY-Exactly one month after revealing its intention to acquire timeshare company Trendwest Resorts Inc., hotel franchisor Cendant Corp. yesterday completed the first step in the acquisition. Cendant, which owns Fairfield Resorts timeshare communities, acquired 90% of Trendwatch common stock for $925 million worth of Cendant stock and absorbed $75 million of Trendwatch debt.

Cendant engaged in a tax-free common stock exchange through majority stockholder JELD-WEN, who owned 81% of Trendwest, and additional stockholders. The source tells GlobeSt.com that Cendant issued 48.3 million shares at a 1:1.2973 ratio of Cendant to Trendwatch stock for the acquisition, based on Cendant market value at that time. “The deal was was determined to be in the best interests of both Trendwest and Cendant stockholders,” a source close to the deal tell GlobeSt.com.

Cendant purchased Fairfield a year ago for $690 million. “We plan to maximize growth by maintaining both Fairfield and Trendwest brands,” says Stephen P. Holmes, chairman of Cendant’s Hospitality Division.