Royal Caribbean Cruises has agreed to acquire a stake in privately-owned Silversea Cruises, bringing together two companies with bold, long-term visions for the cruise industry.
Under the agreement, Royal Caribbean will acquire a 66.7 per cent equity stake in Silversea Cruises based on an enterprise value of approximately $2 billion.
The purchase price of the equity being acquired is approximately $1 billion.
RCL plans to finance the purchase through debt.
In addition, Silversea owner Manfredi Lefebvre D’Ovidio will qualify for an estimated contingent consideration of approximately 472,000 Royal Caribbean shares, payable upon achievement of certain 2019-2020 performance metrics.
“Silversea is a crown jewel, and the acknowledged leader in luxury and expedition cruising, two key markets that are poised for growth,” said Richard Fain, chairman, Royal Caribbean Cruises.
“Uniting our two companies presents an extraordinary opportunity to expand vacation options for guests and create revenue in strategic growth areas.”
Fain added: “We are proud to welcome aboard Manfredi Lefebvre, a visionary leader whose high standards and history of innovation we deeply respect.
“Manfredi will remain executive chairman of Silversea, continuing to lead its strategy long term.”
The strategic rationale for the partnership include driving long-term capacity growth in the burgeoning luxury and expedition markets at a much larger scale than what Silversea would achieve independently.
At the same time the deal will diversify Royal Caribbean’s portfolio and increasing its expedition offerings by adding a premiere ultra-luxury brand.
Lefebvre said he is confident that the significant investment stake he is retaining will sizably increase its value through the growth this long-term partnership will enable.
“This partnership will bolster the growth of this exceptional brand founded by my father,” said Lefebvre.
“I have always been kindred spirits with Richard and we share a vision of offering excellence and leadership to our guests.
“This new partnership gives Silversea the opportunity to accelerate the growth of the most successful luxury and expedition cruising brand in the world.”
Lefebvre and Fain also confirmed that Silversea chief executive Roberto Martinoli will continue in his role, working with the existing Silversea management team.
Silversea, with its intimate, all-suite ships, full spectrum of global cruise offerings sailing to more than 1,000 global destinations.
The closing is expected to be completed later in the year, subject to customary closing conditions and regulatory approvals.