Norwegian Cruise Line has entered into a definitive agreement to acquire Prestige Cruises International, the market leader in the upscale cruise segment and parent company of Oceania Cruises and Regent Seven Seas Cruises, in cash and stock for a total $3.025 billion, including the assumption of debt.
“The acquisition of Prestige represents an extraordinary opportunity for Norwegian Cruise Line to expand our market presence by adding two established, award-winning brands in the upscale cruise segment with loyal followings,” said Kevin Sheehan, Norwegian’s chief executive officer. “Not only does this acquisition immediately enhance our financial performance, but it also deepens the bench of talent that we have been developing over the years. Our complementary strengths and skillsets will pave the way for new cross-selling opportunities, cross-brand collaboration, cross-business support, as well as joint partnerships which, coupled with meaningful synergies that can be quickly implemented, will provide solid accretion to earnings per share and drive long-term shareholder value.”
Prestige operates eight ships and approximately 6,500 berths under two brands – Oceania Cruises, which has five ships offering destination-oriented cruise vacations to more than 330 ports around the globe, and Regent Seven Seas Cruises, which operates three all-suite ships and has an additional ship on order for delivery in summer 2016.
“We are excited to become part of the Norwegian family and start a new chapter for our company,” said Frank Del Rio, who will remain CEO of Prestige. “With Oceania and Regent, we have built iconic brands with distinctive product offerings and strong customer loyalty. The combination is very compelling and will allow us to further enhance our renowned guest experience.”
“The combination of three distinct brands, each serving a different market segment, under one umbrella immediately creates an industry-leading cruise operator with an unmatched growth trajectory and a portfolio of products that allows us to appeal to guests at every stage of their life cycle,” added Sheehan. “We are fully committed to retaining the brand propositions, guest experiences and cultures of the Norwegian, Oceania and Regent brands that have allowed each to realise such success.”
The acquisition transaction is subject to regulatory approvals and other customary closing conditions, and is expected to close in the fourth quarter of 2014. Norwegian will finance the acquisition with existing cash, new and existing debt facilities, and the issuance of approximately 20.3 million shares of its common stock.
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