Cruise operator Royal Caribbean to sell Azamara Brand
Royal Caribbean Group, a cruise operator, reported that it had reached an agreement to sell its Azamara brand to Sycamore Partners for $201 million, as it grapples with the COVID-19 pandemic's biting consequences.
The whole Azamara brand, including its three-ship fleet (Azamara Search, Azamara Journey and Azamara Pursuit) and related intellectual property, will be purchased by Sycamore Partners. Azamara Chief Operating Officer Carol Cabezas has been named President of the brand in accordance with the deal.
Royal Caribbean said it will incur an estimated $170 million one-time, non-cash impairment fee, but claimed the transaction is not expected to have a material impact on its financial performance.
There are some changes and closing conditions for the deal and it is scheduled to close in the first quarter of 2021.
“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,” commented Richard D. Fain, chairman and CEO of Royal Caribbean Group.
Royal Caribbean Group noted that the deal allows it to concentrate on expanding the brands of Royal Caribbean International, Celebrity Cruises and Silversea.
Maritime Business World