I anticipate the day before the signing and today it’s official.
Norwegian Cruise Line has signed an agreement Tuesday to buy Prestige Cruises International, parent company of Oceania Cruises and Regent Seven Seas Cruises, with a value of $ 3,025 million, to diversify their offer.
As reported by the shipping company said in a statement, the amount that will be paid partly in cash and partly by issuing 20.3 million shares, including debt held by the cruise company specializing in the luxury segment. According to forecasts, the transaction could close in the fourth quarter, after receiving regulatory approvals.
Norwegian also pay a fee of $ 50 million to its shareholders once certain performance targets are achieved by 2015 The shipping company has received financing from banks such as Barclays, JP Morgan Securities and Deutsche Bank, along with Deloitte, have also provided financial assistance in the operation.
The “holding” sees the acquisition an “extraordinary opportunity” to expand its presence in the market through the introduction of two new brands in the luxury segment in the cruise industry, said the CEO of the company NCL, Kevin Sheehan.
The company also expects the new addition to improve its financial performance, with increases in earnings per share and a boost in the value of long-term shareholders.
“Our complementary strengths and skills pave the way for new opportunities for cross-selling, the collaboration between the brands, the support of all business and significant synergies,” Sheehan explained.
Norwegian also expected to increase economies of scale, expand its growth and global presence and increase their ability to grow until 2019.
For his part, the president of Prestige, Frank Del Rio, who will remain CEO of the company, hopes to improve the guest experience to be part of the Norwegian team, which aims to provide loyal customers with the harvested three “iconic brands”.
Today, Prestige has eight vessels, five of them under its brand and three Oceania Cruises operated by Regent Seven Seas Cruises. The company expects to add to its fleet an additional ship in the summer of 2016.
“The combination of three different brands, each serving a different market segment, less than one umbrella, immediately creates a leading cruise operator in the industry with a track record of unparalleled growth,” said Sheehan.