Viad Corp ( VVI )  shares are trading higher after the company inked a deal to sell its GES business to Truelink Capital for $535 million.

The purchase price will be adjusted for cash, debt, debt-like items, and normalized working capital and will be paid in cash.

Of this amount, $25 million will be deferred for one year after closing and is contingent solely on the passage of time.

The sale of GES separates Viad’s global exhibition services and experiential marketing business from its Pursuit attractions and hospitality segment.

GES and Pursuit will remain under Viad ( VVI ) until the transaction is finalized, allowing for a smooth transition of GES to Truelink’s portfolio.

After the sale, Viad ( VVI ) plans to rebrand as Pursuit and change its NYSE ticker symbol to PRSU.

Notably, in 2023, Pursuit attracted 3.5 million visitors to its attractions and hosted guests for nearly 420,000 room nights. The business generated $350 million in revenue with an Adjusted EBITDA margin of 26.4%.

The transaction is expected to close by the end of 2024, pending regulatory approvals and customary closing conditions.

Post closure, the cash proceeds will be used to retire Viad’s 2021 Credit Facility, which includes a $317 million outstanding Term Loan B (at SOFR + 425 basis points) and a $170 million revolving credit facility (with no draws as of September 30, 2024).

Steve Moster, Viad’s President and Chief Executive Officer, said, “Both Pursuit and GES have seen significant demand and achieved remarkable results. After a decade long growth journey, Pursuit is now an industry leader with the assets, resources and capabilities to stand on its own.”

”Through this transformative sale, we intend to establish Pursuit as a pure-play, high-growth, high-return business, with the financial strength and balance sheet to capitalize on its substantial growth prospects in the hospitality and attractions space. Additionally, the improved margin profile and growth trajectory of GES position it well for continued success under a new owner that is committed to maximizing GES’ growth potential.”

Price Action: VVI shares are up 17.2% at $41.93 at the last check Monday.

Image via Shutterstock

Read Next:

While Elon Musk Likely To Face Questions About Robotaxi During Earnings Call, Some Analysts Hope Tesla Is Redirecting Focus ‘Back To Fundamentals’