Royal Caribbean Group is selling Azamara Cruises to the American investment company Sycamore Partners. The transaction is valued at $201 million and is subject to certain adjustments and conditions. The deal is expected to close in the first quarter of this year.
The sale agreement includes the brand, fleet, and industrial and intellectual property, as well as guaranteeing that the company's staff of approximately 50 employees will remain intact under the leadership of Carol Cabezas as president and will soon move to their new offices.
Sycamore Partners, a New York-based private equity firm specializing in retail investments, is making its first travel-related investment with this transaction.
Azamara Cruises has a fleet of three ships built in 2000 and 2001: the 690-passenger Azamara Journey, the Azamara Quest, and the Azamara Pursuit. These ships are currently in Glasgow at King George V Dock, where they have spent most of their time in storage. The company shares many similarities with Celebrity Cruises and the group's more recent acquisition, Silversea. Although the fleet expanded from two to three ships in 2018 under the leadership of former Chairman and CEO Larry Pimentel, no new ships were planned.
“Our strategy has evolved to place more of our resources in Royal Caribbean International, Celebrity Cruises, and Silversea, and work to grow them as we emerge from this unprecedented time,” said President and CEO Richard Fain. “Even so, Azamara remains a strong brand with tremendous growth potential, and Sycamore’s track record demonstrates that they will act as good stewards of what the Azamara team has built over the past 13 years.”.
“We are delighted that the Royal Caribbean Group has entrusted Sycamore with supporting Azamara in its next phase of growth,” said Stefan Kaluzny, Managing Director of Sycamore Partners. “We are thrilled to partner with the Azamara team and build upon their many years of success serving the brand’s loyal customers, and we are confident that Azamara Cruises will continue to be a top choice for discerning travelers as the cruise industry recovers.”.
Royal Caribbean Group expects Azamara's value proposition and operations to remain consistent under the new owner, and will work closely together to ensure a smooth transition for employees, customers, and other stakeholders.
