Norwegian confirms Prestige Cruises acquisition

TD Guest Writer

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Regent Seven Seas' ships
Regent Seven Seas’ ships

Norwegian Cruise Line Holdings has confirmed it will acquire Prestige Cruises International, the parent company of Oceania Cruises and Regent Seven Seas Cruises.

A definitive agreement has been secured for the US$3.025 billion purchase including the assumption of debt.

The move will allow Norwegian to offer various brands that are targeted at different markets similarly to rivals Royal Caribbean and Carnival Corporation.

Oceania operates with five ships with destination-focused cruises while luxury cruise brand Regent Seven Seas Cruises has three all-suite ships with a fourth to be delivered in summer 2016.

All three of the brands are expected to retain their own current service.

“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 Cruise Line’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.”

“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.”

Frank Del Rio will remain CEO of Prestige.

“We are excited to become part of the Norwegian family and start a new chapter for our company,” he said. “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. We are looking forward to joining the Norwegian team and building upon the success that our three brands have already achieved.”

Klook.com

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