Bluegreen Vacations (NYSE:BGX) stock is gaining slightly today as the company announced that it has reached a settlement with Bass Pro and its affiliates in regards to prior disputes among the two parties.
The two businesses said that they have amended their Marketing and Promotions Agreement that will reinstate Bluegreen’s access to Bass Pro’s marketing channels, which includes all marketing activities in Bass Pro retail stores, extending into the Cabela’s retail stores.
The Settlement Agreement and Amendment states that Bluegreen will pay Bass Pro $20 million within 15 days of the execution of the Settlement and Amendment with no admission of wrongdoing. Additionally, the company will pay $4 million each January 1st starting in 2020 through 2024 for a total of $20 million.
Bass Pro will also keep the remaining $1.5 million of an amount prepaid to them earlier in 2019 under the Marketing and Promotions Agreement. “We look forward to building on our 19-year partnership with Bass Pro, through which we have developed close to 700 units in our joint venture at three luxury resorts and together built a successful marketing partnership in their stores,” said Shawn B. Pearson, President and CEO of Bluegreen.
“We are excited about our ability to expand into Cabela’s locations, which will further cement our ability to grow and give their more than 200 million store visitors each year the opportunity to make memories at our resorts,” he added.
“Bluegreen shares our commitment to providing our customers and its owners and guests a memorable vacation in the great outdoors. We look forward to this next chapter of our long running relationship,” Johnny Morris, Founder and CEO of Bass Pro said.
BGX stock is up about 0.2% on Friday following the news.