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Silversea

Royal Caribbean buys “crown jewel” Silversea

The $1 billion majority stake in Silversea is designed to drive capacity in the luxury and expedition markets.

Royal Caribbean Cruises has agreed a deal for a $1 billion 66.7% equity stake in Silversea Cruises, as its chairman and chief executive Richard Fain called the luxury cruise line “a crown jewel”.

The two cruise lines said the deal would help drive long-term capacity growth in the luxury and expedition markets “at a much larger scale than what Silversea would achieve independently,” TTG reports.

It would also help to diversify Royal Caribbean’s portfolio in the expedition segment by adding “a premiere ultra-luxury brand”.

Silversea chairman Manfredi Lefebvre D’Ovidio said the agreement would bring together two lines with “bold, long-term visions for the cruise industry.

Financed through debt
Under the agreement, Royal Caribbean will acquire a 66.7% equity stake in Silversea based on an enterprise value of approximately $2 billion.

The purchase price of the equity being acquired is around $1 billion. Royal Caribbean plans to finance the purchase through debt.

D’Ovidio will remain Silversea’s executive chairman and continue to lead its strategy over the long term.

Fain said: “Silversea is a crown jewel, and the acknowledged leader in luxury and expedition cruising, two key markets that are poised for growth. Uniting our two companies presents an extraordinary opportunity to expand vacation options for guests and create revenue in strategic growth areas.”

The deal is expected to be completed later in the year, subject to customary closing conditions and regulatory approvals.

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