Royal Caribbean Group said it is selling its Azamara luxury cruise line for $ 201 million in cash to private equity firm Sycamore Partners, a move that could allow the company to focus on its core business after nearly a year since the coronavirus outbreaks on board travel in The United States.
The divestment is the latest intervention by a cruise line during the Covid-19 pandemic as operators look for additional sources of cash. Royal Caribbean Finance Chief Jason Liberty said the deal was not motivated by financial reasons and had considered selling the brand before the health crisis.
The company will seek to expand its Royal Caribbean International, Celebrity Cruises and Silversea core brands after the sale, according to Royal Caribbean, which also operates TUI Cruises and Hapag-Lloyd Cruises under a joint venture. Under the transaction, which is expected to close in the first quarter, Sycamore will acquire Azamara’s three ships and intellectual property such as the brand’s logo and slogan, the company added.
Royal Caribbean said in December that it has sold two ships from its Royal Caribbean International fleet. The company will come out of the deal with three ships less than its fleet of 61 ships in 2019, after receiving two ship deliveries and exiting a joint venture for Pullmantur Cruceros, which filed for reorganization in 2020 under Spanish insolvency law, according to a report. spokesman.
“It allows us to really prioritize our resources, which are not just financial resources, but also the mind and time of management,” Mr. Liberty told The Wall Street Journal.