Following the news of the sale of its GES business sector and the release of its transformation strategy, Viad Corp (NYSE: VVI) saw a significant increase in the price of its shares, which rose 14.66% to $41.03. Investor trust in the company’s strategic approach is shown in this growing trend.
Viad Sold GES Business Segment
Viad (VVI) revealed a final deal to sell its GES division to Truelink Capital for a whopping $535 million. It is anticipated that this deal would close by the end of 2024, pending regulatory clearances and standard closing requirements.
An important turning point in the company’s development was the split of GES, a world leader in exhibition services and experiential marketing, from Viad’s Pursuit attractions and hospitality division. Until the transaction is concluded, both GES and Pursuit will operate under Viad, allowing for a smooth transition as management collaborates with Truelink to establish GES as a standalone entity.
VVI Will Focus on Pursuit
Post-transaction, Viad plans to rebrand itself as Pursuit, adopting a new ticker symbol, PRSU, on the NYSE. This strategic separation is underscored by the belief that both Pursuit and GES have reached a critical juncture, warranting their independent trajectories.
With Pursuit having achieved remarkable growth—hosting 3.5 million visitors and generating $350 million in revenue in 2023—it is poised to leverage its resources and capabilities as a high-growth, high-return entity in the hospitality sector.
Enhanced Opportunities for Growth
Viad’s transformation aims to enable Pursuit to allocate resources more effectively and pursue distinct growth models led by an experienced management team. VVI seeks to capitalize on its enhanced balance sheet to explore high-return growth opportunities through its Refresh, Build, Buy strategy.
This approach will incorporate vertically integrated lodging and hospitality experiences, fostering cross-selling and upselling opportunities while enhancing overall financial performance. The simplification of Viad’s business structure aligns with investor preferences and market trends, ultimately creating new opportunities for employees as VVI continues to expand and diversify.
