ROYAL Caribbean Cruises (RCL) will extend its reach into the ultra-luxury sector with its billion-dollar investment in Silversea Cruises (TD breaking news).
Under a deal announced overnight, RCL will borrow US$1 billion to finance its acquisition of a 66.7% equity stake in the privately owned Silversea.
“Silversea is a crown jewel, and the acknowledged leader in luxury and expedition cruising, two key markets that are poised for growth,” said RCL chairman and ceo Richard D. Fain.
“Uniting our two companies presents an extraordinary opportunity to expand vacation options for guests and create revenue in strategic growth areas,” he said.
Silversea’s existing majority owner, Manfredi Lefebvre d’Ovidio, will receive 472,000 RCL shares as part of the deal and will remain executive chairman.
The parties have also confirmed Roberto Martinoli will remain as Silversea ceo and will continue working with the Monaco-based line’s existing management team.
“This partnership will bolster the growth of this exceptional brand founded by my father,” Lefebvre said.
“This new partnership gives Silversea the opportunity to accelerate the growth of the most successful luxury and expedition cruising brand in the world.”
Source: Travel Australia