“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 RCL. “Uniting our two companies presents an extraordinary opportunity to expand vacation options for guests and create revenue in strategic growth areas.”
Royal Caribbean Cruises Ltd (RCL) will be acquiring a 66.7% equity stake in the privately-owned Silversea Cruises for approximately US$1 billion, based on an enterprise value of an estimated US$2 billion.
RCL said in a statement that it plans to finance the purchase through debt. In addition, chairman of Silversea Cruises Manfredi Lefebvre D’Ovidio will qualify for an estimated contingent consideration of approximately 472,000 RCL shares, payable upon achievement of certain 2019-2020 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 Richard D. Fain, chairman and CEO of RCL. “Uniting our two companies presents an extraordinary opportunity to expand vacation options for guests and create revenue in strategic growth areas.”
Fain added that Manfredi will remain executive chairman of Silversea to lead its long-term strategy.
“This partnership will bolster the growth of this exceptional brand founded by my father," said Lefebvre. “I have always been kindred spirits with Richard and we share a vision of offering excellence and leadership to our guests. This new partnership gives Silversea the opportunity to accelerate the growth of the most successful luxury and expedition cruising brand in the world.”
Lefebvre and Fain also confirmed that Silversea's CEO Roberto Martinoli will continue in his role, working with the existing Silversea management team.
The strategic rationale for the partnership includes driving long-term capacity growth in the burgeoning luxury and expedition markets, diversifying RCL’s portfolio, adding vacation and destination options for guests and realising “significant synergies and economies of scale”, according to an RCL media release.
Lefebvre said he is confident that the significant investment stake he is retaining will sizably increase its value through the growth this long-term partnership will enable.
The closing is expected to be completed later in the year, subject to customary closing conditions and regulatory approvals.