Royal Caribbean Group to sell Azamara cruise brand to Sycamore Partners for $201m
Royal Caribbean Group, an American global cruise holding company, has entered into a definitive agreement to sell its Azamara brand to Sycamore Partners, a private equity firm, for $201 million.
The deal is an all-cash carve-out transaction which is subject to certain adjustments and closing conditions.
Sycamore Partners will purchase the entire Azamara brand comprising its three-ship fleet and associated intellectual property. The transaction is expected to close in the first quarter of 2021.
Royal Caribbean Group said that the transaction lets it focus on expanding its Royal Caribbean International, Celebrity Cruises, and Silversea brands.
Richard D. Fain – Chairman and CEO of Royal Caribbean Group said: “Our strategy has evolved into placing more of our resources behind three global brands, Royal Caribbean International, Celebrity Cruises and Silversea, and working to grow them as we emerge from this unprecedented period.
“Even so, Azamara remains a strong brand with its own tremendous potential for growth, and Sycamore’s track record demonstrates that they will be good stewards of what the Azamara team has built over the past 13 years.”
Royal Caribbean Group to sell Azamara cruise brand to Sycamore Partners for $201m. Photo courtesy of Royal Caribbean Cruises Ltd.
The cruise holding company said it will closely work with the private equity firm to ensure a smooth transition for Azamara employees, customers, and other stakeholders.
Following the transaction, Azamara Chief Operating Officer Carol Cabezas will be appointed President of the brand.
Stefan Kaluzny-Managing Director of Sycamore Partners said: “We are pleased that Royal Caribbean Group has entrusted Sycamore to support Azamara in its next phase of growth.
“We are excited to partner with the Azamara team and build on their many years of success serving the brand’s loyal customers. We believe Azamara will remain a top choice for discerning travelers as the cruising industry recovers over time.”
Royal Caribbean Group also said that the transaction will result in a one-time, non-cash impairment charge of approximately $170 million. Furthermore, the Azamara sale transaction is not expected to have a significant effect on Royal Caribbean Group’s future financial results.