Pullmantur Cruises and Croisières de France will benefit from the strengths of both companies.
Royal Caribbean Cruises Ltd. (NYSE: RCL or “Royal Caribbean”) and Madrid-based independent investment firm Springwater Capital (“Springwater”) today announced an agreement to create a joint venture dedicated to providing the best cruise experiences tailored to the culture of Spanish and French tourists, through the management of the Pullmantur and Croisières de France (“CDF”) brands.
As part of the terms of this agreement, RCL will sell a 51 percent stake in Pullmantur and CDF to Springwater. RCL will retain a 49 percent stake and ownership of the ships and aircraft currently operated by Pullmantur and CDF, which will be leased to the joint venture. RCL will also provide maritime operations services to Pullmantur and CDF through a management agreement.
This joint venture expands the already successful relationship between RCL and Springwater in Wamos's air transport, travel agency, and tour operator businesses. This investment also broadens Springwater's presence in the tourism sector, where it already has investments in airlines and travel agencies in Spain, France, and Portugal.
“Pullmantur and CDF have a long and successful track record of offering cruise vacations tailored to the local tastes of their markets,” said Richard D. Fain, President and CEO of Royal Caribbean. “We expect that this new approach that the joint venture with Springwater will bring to these two companies will contribute to their growth.”
Fain added that “given the signs of recovery we have seen in the Spanish economy, as well as growing interest in cruises among tourists in France, we believe this is the right time to combine the extensive experience of our valued Pullmantur and CDF teams with the local tourism and travel expertise of the Springwater team. Springwater’s presence in Madrid, along with Royal Caribbean’s long history in cruise operations, provides the foundation for a stronger return in the future.”
Martin Gruschka, CEO of Springwater, added, “We are delighted to announce the joint venture with Royal Caribbean and look forward to working with the Pullmantur and CDF teams. The agreement benefits from our experience in the travel sector and the strong customer and travel industry relationships that Pullmantur and CDF have in the Spanish and French markets. These relationships—together with Royal Caribbean’s cruise management expertise—form the basis for a successful long-term strategic partnership.”
This joint venture is expected to be completed by the end of this year, subject to customary closing conditions and regulatory approvals. The sale is expected to result in a non-recurring, intangible gain that will be excluded from RCL's key performance indicators. Due to the markets in which Pullmantur operates, the transaction is expected to have a partially offsetting impact on earnings and expenses. The extent of these impacts will depend on the timing of regulatory approval and transaction completion, but the net effect on the company's 2016 results is expected to be neutral or marginally positive.
About Royal Caribbean:
Royal Caribbean Cruises Ltd. (NYSE: RCL) is a global cruise vacation company that owns the Royal Caribbean International, Celebrity Cruises, Pullmantur, Azamara Club Cruises, and CDF Croisières de France brands, as well as TUI Cruises through a 50 percent joint venture. Together, these six brands operate a combined fleet of 46 ships with 10 more on order. They operate diverse itineraries around the world, calling at approximately 490 destinations on seven continents. Additional information can be found at www.rclcorporate.com, www.rclinvestor.com, www.royalcaribbean.com, www.celebritycruises.com, www.pullmantur.es, www.azamaraclubcruises.com, www.cdfcroisièresdefrance.com, or www.tuicruises.com.
About Springwater Capital:
Springwater Capital, LLC is an independent firm that began operations in 2002. The firm invests in various sectors across major European countries and works closely with company executives to achieve high and sustainable growth rates. Springwater has made more than 30 investments and currently has 20 business groups in its portfolio, representing approximately €3 billion in revenue. In Spain, Springwater has invested in companies such as Wamos, Aernnova, Delion, Daorje, Nervión Industries (Monesa), Fivemasa, Ceyde, Think Textil, Imtech, Peggy Sue's, and SGEL. In the tourism sector, Springwater has a presence through its subsidiaries in several countries, including Spain, Portugal, Italy, France, and parts of Africa.
