Royal Caribbean To Take Majority Stake In Silversea
Bruce Parkinson, Open Jaw
Silversea chairman Manfredi Lefebvre d'Ovidio (left) and RCCL chairman Richard Fain sign the US$1 billion deal.
Royal Caribbean Cruises Ltd. and Manfredi Lefebvre D'Ovidio have announced an agreement for RCL to acquire a majority stake in privately-owned Silversea Cruises.
Under the agreement, Royal Caribbean will acquire a 66.7% equity stake in Silversea Cruises based on an enterprise value of approximately US$2 billion. The purchase price of the equity being acquired is approximately US$1 billion.
"Silversea is a crown jewel, and the acknowledged leader in luxury and expedition cruising, two key markets that are poised for growth," said Richard D. Fain, Chairman and CEO of Royal Caribbean Cruises Ltd.
"Uniting our two companies presents an extraordinary opportunity to expand vacation options for guests and create revenue in strategic growth areas."
Fain added: "We are proud to welcome aboard Manfredi Lefebvre, a visionary leader whose high standards and history of innovation we deeply respect. Manfredi will remain Executive Chairman of Silversea, continuing to lead its strategy long term."
Lefebvre says mutual respect led to the deal.
"This partnership will bolster the growth of this exceptional brand founded by my father. I have always been kindred spirits with Richard and we share a vision of offering excellence and leadership to our guests. This new partnership gives Silversea the opportunity to accelerate the growth of the most successful luxury and expedition cruising brand in the world."
In a statement, Royal Caribbean listed what it sees as the strategic rationale for the partnership:
Driving long-term capacity growth in the burgeoning luxury and expedition markets at a much larger scale than what Silversea would achieve independently;
Diversifying Royal Caribbean's portfolio and increasing its expedition offerings by adding a premiere ultra-luxury brand;
Leveraging the global footprint of the combined companies to generate demand and increase vacation and destination options for the guests of both companies;
Realizing significant synergies related to global market access, supply chain, purchasing power and other economies of scale.
Lefebvre and Fain also confirmed that Silversea's CEO Roberto Martinoli will continue in his role, working with the existing Silversea management team.
Bruce Parkinson Editor-in-Chief
An observer and analyst of the Canadian and international travel industries for over 25 years, Bruce uses the pre-dawn hours to prepare a daily news and information package to keep industry members up to date.