Silversea acquired by Royal Caribbean Cruises

Majority stake bought by Celebrity Cruises' parent in "Crown Jewel" deal

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Royal Caribbean Cruises Ltd (RCL) will add another cruise company to its line-up after announcing a deal to acquire a controlling stake in ultra-luxury Silversea Cruises.

Overnight, RCL and Manfredi Lefebvre D’Ovidio revealed the arrangement to buy into the privately owned Silversea Cruises, “bringing together two companies with bold, long-term visions for the cruise industry”.

Under the deal, Royal Caribbean will acquire a 66.7% equity stake in Silversea based on an enterprise value of approximately $2 billion. The purchase price of the equity being acquired is approximately $1 billion.

“Silversea is a crown jewel, and the acknowledged leader in luxury and expedition cruising, two key markets that are poised for growth,” said Richard D. Fain, Chairman and CEO of Royal Caribbean Cruises Ltd.

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

“We are proud to welcome aboard Manfredi Lefebvre, a visionary leader whose high standards and history of innovation we deeply respect. Lefebvre will remain Executive Chairman of Silversea, continuing to lead its strategy long term.”

Lefebvre said the partnership will enable Silversea “to accelerate the growth of the most successful luxury and expedition cruising brand in the world.”

Deal done – Silversea Cruises Manfredi Lefebvre d’Ovidio (left) and Royal Caribbean’s Richard Fain sign off on the deal.

RCL highlighted a range of points as part of its “strategic rationale” for the deal, including ramping up capacity growth in the “burgeoning luxury and expeditions markets”, diversifying its current portfolio, leveraging the global footprint of the combined companies and building on “significant synergies”.

Silversea’s Chief Executive Officer Roberto Martinoli will maintain his role.

RCL’s largest brand, Royal Caribbean International, is a contemporary brand focused on adventure-seeking families, Celebrity Cruises is a premium brand providing a modern luxury experience to discerning global travellers, and Azamara Club Cruises is a destination immersive brand offering luxury voyages to unique ports. The company also operates the regional TUI Cruises and Pullmantur brands as part of long-term joint ventures.

The arrangement is expected to be completed later in the year, subject to customary closing conditions and regulatory approvals.

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