Ultimate Escapes Completes Private Escapes Merger

By: Destination Club News
Date: September 16, 2009

Two weeks removed from the announcement that Ultimate Escapes and Secure America Acquisition Corporation had signed an agreement that would make them the first publicly traded destination club, the world's second largest club has more exciting news to report: the completion of the acquisition of Private Escapes.

The closure officially brings in 387 members from Private Escapes, nearly 50 residences, and 16 new destinations to Ultimate Escapes. Members of both Ultimate Resort and Private Escapes have had access to the combined portfolio since May of last year.

“We are very excited about closing this important acquisition, as it is the largest transaction to date in the industry and strengthens our position in the luxury destination club market," said Ultimate Escapes President and CEO Jim Tousignant. "The acquisition of certain assets of Private Escapes, the third largest destination club, brings $50 million of luxury resort real estate assets and 387 new club members to our family of destination clubs. In addition, we are very pleased to have the dedicated staff of Private Escapes join our team, as well have the former CEO of Private Escapes, Rich Keith, become Chairman of our company. Rich Keith is a highly valuable addition to our board, as his operational and strategic experience in the destination club market will be instrumental in helping grow Ultimate Escapes in the years to come. This acquisition highlights our ongoing commitment to offering our members the most diverse selection of club membership plans, the best flexibility, and the broadest range of club destinations and vacation experiences in the industry. With the new equity capital from our pending transaction with Secure America, we look forward to pursuing additional accretive transactions in the future to grow our membership base and expand our global presence into new markets in Europe and Asia."

First officially announced on September 13, 2007, the union of the second and third largest destination clubs created the largest club in the $1 million and $2 million home value category. The new Ultimate Escapes brand name was unveiled in May of 2008 and as the club continued to work towards the final terms that would join Ultimate Resort and Private Escapes, one of the worst financial storms hit the destination club industry. Before the dust had settled, High Country Club, LUSSO Collection, Yellowstone Club World, and Solstice had all filed for bankruptcy and nearly every other destination club in the sector had made sweeping changes to their structure.

Ultimate Escapes would reach out to members to pay a special assessment to weather the storm. According to the club, roughly 80% elected to do so, providing Ultimate Escapes with $16 million to help assure members that their club would not face a similar fate of many of their competitors.

Following the assessment, the collected teams continued their diligent work, with today's announcement the fruits of their labor. While the official closing on the acquisition won't greatly impact the member experience, it does play an integral component in the club's long term growth and their near term agreement with Secure America Acquisition Corporation.

"We are very pleased that Ultimate Escapes has completed its acquisition of Private Escapes, as this was an important condition to the closing of the proposed transaction with Secure America," said Mr. C. Thomas McMillen, Chairman and Co-Chief Executive Officer of Secure America. "Through expanding its portfolio of luxury real estate properties and growing its membership base, this transaction highlights Ultimate Escapes commitment to growth. With enhanced resources from the proposed business combination with Secure America, we are optimistic about Ultimate Escapes’ ability to further expand its presence as a premiere operator of destination clubs in the world."