Royal Caribbean Cruises Ltd (RCL) and Manfredi Lefebvre D’Ovidio have announced an agreement for RCL to acquire a stake in privately owned Silversea Cruises.
Under the agreement, Royal Caribbean will acquire a 66.7% equity stake in Silversea Cruises based on an enterprise value of approximately US$2Bn. The purchase price of the equity being acquired is approximately US$1Bn. RCL said it plans to finance the purchase through debt. In addition, Mr Lefebvre will qualify for an estimated contingent consideration of 472,000 RCL 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 Royal Caribbean Cruises chairman and chief executive Richard D Fain.
“Uniting our two companies presents an extraordinary opportunity to expand vacation options for guests and create revenue in strategic growth areas.”
Mr Fain added “We are proud to welcome aboard Mr Lefebvre, a visionary leader whose high standards and history of innovation we deeply respect. Mr Lefebvre will remain executive chairman of Silversea, continuing to lead its strategy long term.”
“This partnership will bolster the growth of this exceptional brand founded by my father," said Mr Lefebvre. “I have always been kindred spirits with Mr Fain 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.”
A statement said the strategic rationale for the partnership includes:
Mr Fain confirmed that Silversea's chief executive Roberto Martinoli will continue in his role, working with the existing Silversea management team.
The closing is expected to be completed later in the year, subject to customary closing conditions and regulatory approvals.