Cruise ship company Royal Caribbean Cruises (RCL) is to acquire a 66.7% equity stake in Silversea Cruises based on an enterprise value of approximately USD 2 billion.
Royal Caribbean said that the price of the equity being acquired is around USD 1 billion, adding that it plans to finance the purchase through debt.
In addition, Manfredi Lefebvre D’Ovidio, Chairman of Silversea Cruises, will qualify for an estimated contingent consideration of 472,000 RCL shares, payable upon achievement of certain 2019-2020 performance metrics.
“Silversea is a crown jewel, and the acknowledged leader in luxury and expedition cruising, two key markets that are poised for growth,” Richard D. Fain, Chairman and CEO of Royal Caribbean Cruises, said.
“Uniting our two companies presents an extraordinary opportunity to expand vacation options for guests and create revenue in strategic growth areas,” Fain added.
The closing is expected to be completed later in the year, subject to customary closing conditions and regulatory approvals.