RCL buys majority stake in Silversea

Royal Caribbean Cruises is set to invest in the ultra-luxury space, with the company announcing it will acquire a majority stake in Silversea Cruises.

The $1 billion deal aims to propel the growth of the luxury and expedition brand and brings together “two companies with bold, long-term visions for the cruise industry”.

Manfredi Lefebvre D’Ovidio will remain as Silversea’s executive chairman and will work with the existing management team.

He will also qualify for an estimated contingent consideration of approximately 472,000 RCL shares, payable upon achievement of certain 2019-20 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 ceo Richard Fain.

“Uniting our two companies presents an extraordinary opportunity to expand vacation options for guests and create revenue in strategic growth areas.”

D’Ovidio said the deal would bolster the growth of Silversea.

“This new partnership gives Silversea the opportunity to accelerate the growth of the most successful luxury and expedition cruising brand in the world,” he said.

The partnership has identified four key goals, including driving long-term capacity growth in the luxury and expedition markets at a much larger scale than what Silversea would achieve independently and diversifying Royal Caribbean’s portfolio and increasing its expedition offerings by adding an ultra-luxury brand.

It also aims to leverage the global footprint of the combined companies to generate demand and increase vacation and destination options for the guests of both companies and realise significant synergies related to global market access, supply chain, purchasing power and other economies of scale.

The close of the deal is expected to be completed later this year, subject to customary closing conditions and regulatory approvals.

Silversea Cruises sails to more than 1,000 global destinations with its ultra-luxury and expedition vessels.

Earlier this year it declared it was plotting “ambitious plans for growth” in the Australian and New Zealand markets when it appointed current Royal Caribbean Cruises associate vice president and managing director Australian and New Zealand Adam Armstrong as its next local head.

Armstrong has been with Royal Caribbean since 2009 when it first opened an office in Sydney.