They’ve conquered mass market cruising, made waves in luxury and now Royal Caribbean International is ready to take on expedition itineraries (outside of Celebrity Cruises) with the partial purchase of Silversea Cruises.
Earlier this week, Royal Caribbean International acquired a controlling 66.7 percent of Silversea Cruises for around $1 billion.
As part of the purchase, which will be financed through debt, the cruise company will have majority stake over Silversea including all its nine vessels such as the recently refurbished Silver Spirit.
Royal Caribbean takes majority control of Silversea Cruises, including Silver Spirit [pictured].
The purchase also means that Adam Armstrong, the recently departed Australia and New Zealand boss for Royal Caribbean, is back to working with his former employers (or maybe that was always the plan ?).
According to Royal Caribbean International, the intent behind the purchase is to diversify product by expanding further into the expedition market with a premium ultra-luxury brand.
The purchase will expand Royal Caribbean’s reach in ultra-luxury & expedition cruising.
The company also hopes to leverage the global footprint of the combined businesses to generate demand and increase destination options.
Royal Caribbean International’s Chairman & Chief Executive, Richard D. Fain, described Silversea as a “crown jewel” and an extraordinary opportunity to “expand vacation options for guests and create revenue in strategic growth areas”.
The acquisition is expected to be completed by the end of the year and is subject to customary closing conditions and regulatory approvals. Once approved, Silversea will join Azamara Club Cruises, Celebrity Cruises and Royal Caribbean under Royal Caribbean International’s portfolio.
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