Royal Caribbean Invests $1 Billion In Ultra-Luxury Line
Royal Caribbean Cruises Ltd. has announced that they’re purchasing a majority stake in the luxury line Silversea Cruises.
With the new partnership, Royal Caribbean will buy a 66.7 percent equity stake in Siversea for about $1 billion and finance the purchase through debt. The Monaco-based ultra-luxury line’s enterprise value is around $2 billion.
Silversea’s fleet is comprised of intimate, all-suite ships, the largest of which is only 40,700 gross tons and holds only 596 passengers. The company operates nine ships in total.
“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, RCL’s chairman and CEO. “Uniting our two companies presents an extraordinary opportunity to expand vacation options for guests and create revenue in strategic growth areas.
The deal adds an ultra-luxury brand to Royal Caribbean’s portfolio, which already included destination-focused luxury line Azamara Club Cruises, premium brand Celebrity Cruises, and their largest line Royal Caribbean, which caters to adventure-seeking families.
Silversea’s executive chairman, Manfredi Lefebvre, will remain in his current role and continue to lead the company in its long-term goals. His father Antonio Lefebvre d’Ovidio, a maritime law professor, founded Silversea in the early 1990s. Manfredi is confident that the stake he’s keeping will grow significantly in value through the partnership; he’ll qualify for an estimated 472,000 Royal Caribbean Cruises Ltd. shares.
Silversea CEO Roberto Martinoli will also continue in his current role, working with the existing Silversea management team. The line will also continue to operate out of Monaco.