The cruise giant is poised to make a giant splash in luxury and expedition cruising.
Today’s billion-dollar agreement between Royal Caribbean Cruises Ltd (RCL) and Silversea Cruises places 66.7 percent of Silversea equity into RCL’s hands, a move that is expected to save both companies $50 million in costs while adding 25 cents per share in earnings to RCL within the first year. The deal was struck with Silversea’s chairman and owner, Manfredi Lefebvre D’Ovidio, who, in return, will receive approximately 472,000 shares of RCL contingent upon achievement of specified performance metrics 2019 to 2020. The Royal Caribbean and Silversea partnership gives Silversea the opportunity for accelerated growth and RCL a foothold in luxury and expedition, the demand for which is growing by leaps and bounds.
In a release by RCL that hit the wires today, Richard D. Fain, chairman and CEO of Royal Caribbean Cruises Ltd, said partnering with Silversea and Lefebvre was an “extraordinary opportunity” for both companies. “Silversea is a crown jewel and the acknowledged leader in luxury and expedition cruising, two key markets that are poised for growth. … We are proud to welcome aboard Manfredi Lefebvre, a visionary leader whose high standards and history of innovation we deeply respect.”
Lefebvre, who will continue to lead Silversea’s strategy long-term as executive chairman, described Fain as a “kindred spirit” and the partnership as one of “shared vision.” Silversea’s CEO Roberto Martinoli will also continue working with the existing management team.
Silversea’s intimate, all-suite ships and luxury expedition vessels sail to more than 1,000 global destinations, reinvigorating RCL with its luxe vibe and pioneering spirit. RCL will also continue on business as usual with Royal Caribbean International, its contemporary brand focused on adventure-seeking families, Celebrity Cruises, a premium brand providing a modern luxury experience to global travelers, and Azamara Club Cruises, a destination immersive brand offering luxury voyages to unique ports.
The Royal Caribbean and Silversea closing is expected to be completed later in the year, following customary closing conditions and regulatory approvals.