Norwegian Cruise Lines buys Oceania, Regent Seven Seas
I suppose the deal makes sense for Norwegian because they have tried to carve a niche in the luxury segment with their “The Haven” product (a luxury cruise within a premium cruise) with no real impact in the luxury cruise segment. With the purchase of Oceania and Regent, they will now have an industry leading upper-premium cruise line (Oceania), and one of the market leaders in the luxury cruise segment (Regent Seven Seas).
As one who is in the business of designing luxury travel experiences for our clients, our great wish for Norwegian, Oceania, and Regent is that they can truly make 1+1+1=4, instead of diminishing the great quality of what they are purchasing. All three brands are fabulous at what they do. The real question becomes, can they find synergies and create something even more spectacular. We hope so! 🙂
Here’s some of the details from a Norwegian Cruise Lines press release:
Norwegian Cruise Line Holdings Ltd. (“Norwegian Cruise Line” or “Norwegian,” (NASDAQ: NCLH)), a leading global cruise operator, today announced it has entered into a definitive agreement to acquire Prestige Cruises International, Inc. (“Prestige”), the market leader in the upscale cruise segment and parent company of Oceania Cruises and Regent Seven Seas Cruises, in cash and stock for a total transaction consideration of $3.025 billion, including the assumption of debt.
“The acquisition of Prestige represents an extraordinary opportunity for Norwegian Cruise Line to expand our market presence by adding two established, award-winning brands in the upscale cruise segment with loyal followings,” said Kevin Sheehan, Norwegian Cruise Line’s chief executive officer. “Not only does this acquisition immediately enhance our financial performance, but it also deepens the bench of talent that we have been developing over the years. Our complementary strengths and skillsets will pave the way for new cross-selling opportunities, cross-brand collaboration, cross-business support, as well as joint partnerships which, coupled with meaningful synergies that can be quickly implemented, will provide solid accretion to earnings per share and drive long-term shareholder value,” added Sheehan.
“We are excited to become part of the Norwegian family and start a new chapter for our company,” said Frank Del Rio, chairman and CEO of Prestige. “With Oceania and Regent, we have built iconic brands with distinctive product offerings and strong customer loyalty. The combination is very compelling and will allow us to further enhance our renowned guest experience. We are looking forward to joining the Norwegian team and building upon the success that our three brands have already achieved.”
Prestige operates eight ships and approximately 6,500 berths under two segment-leading brands. Oceania Cruises is the market leader in the upper-premium cruise segment with five ships offering destination-oriented cruise vacations to more than 330 ports around the globe, gourmet culinary experiences, elegant accommodations and personalized service. Regent Seven Seas Cruises is the market leader in the luxury cruise segment and operates three award-winning, all-suite ships, with an additional ship on order for delivery in summer 2016. Regent offers the industry’s most inclusive luxury vacation experience visiting over 250 destinations worldwide. Frank Del Rio will remain chief executive officer of Prestige.
“The combination of three distinct brands, each serving a different market segment, under one umbrella immediately creates an industry-leading cruise operator with an unmatched growth trajectory and a portfolio of products that allows us to appeal to guests at every stage of their life cycle,” added Sheehan. “We are fully committed to retaining the brand propositions, guest experiences and cultures of the Norwegian, Oceania and Regent brands that have allowed each to realize such success.”
For the full press release, go here. Photo courtesy of Norwegian Cruise Lines.
If you enjoyed this article, sign up for our monthly newsletter to keep abreast of our best travel tips, on-location reviews, exclusive travel offers, group travel events, and much more.