Royal Caribbean to sell Azamara brand

Royal Caribbean to sell Azamara brand

MIAMI — Royal Caribbean Group is selling Azamara in an all-cash transaction valued at over US$200 million.

The cruise giant announced that it has entered into a definitive agreement to sell the boutique luxury line to Sycamore Partners, a private equity firm specializing in consumer, retail and distribution investments. The transaction totals $201 million and is subject to certain adjustments and closing conditions.

Once the transaction closes, which is expected in Q1 of 2021, Sycamore will acquire the entire Azamara brand, including its three-ship fleet and associated intellectual property.

In conjunction with the transaction, Azamara Chief Operating Officer Carol Cabezas has been appointed President of the brand.

According to Royal Caribbean Group, the transaction will allow it to focus on expanding its Royal Caribbean International, Celebrity Cruises and Silversea brands.

“Our strategy has evolved into placing more of our resources behind three global brands, Royal Caribbean International, Celebrity Cruises and Silversea, and working to grow them as we emerge from this unprecedented period,” said Richard D. Fain, Chairman and Chief Executive Officer of Royal Caribbean Group. “Even so, Azamara remains a strong brand with its own tremendous potential for growth, and Sycamore’s track record demonstrates that they will be good stewards of what the Azamara team has built over the past 13 years.”

Added Stefan Kaluzny, Managing Director of Sycamore Partners: “We are pleased that Royal Caribbean Group has entrusted Sycamore to support Azamara in its next phase of growth. We are excited to partner with the Azamara team and build on their many years of success serving the brand’s loyal customers. We believe Azamara will remain a top choice for discerning travellers as the cruising industry recovers over time.”

The transaction will result in a one-time, non-cash impairment charge of approximately $170 million. The sale of Azamara is not expected to have a material impact on Royal Caribbean Group’s future financial results.