Leading global cruise line, Norwegian Cruise Line Holdings, bought privately held Prestige Cruises International for a little over $3 billion in cash and stock. The deal included the assumption of debt, to add higher-end trips to its fleet and offerings.
In addition, under the terms of the deal, Norwegian Cruise Line could pay up to $50 million to Prestige’s shareholders if the target company meets certain financial performance targets next year.
Kevin Sheehan, Norwegian Cruise Line’s Chief Executive Officer said, “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.”
Norwegian Cruise Line has been around for over 47 years. Breaking away from traditional cruising, the cruise line revolutionized the industry with Freestyle Cruising, giving guests more freedom and flexibility. With 13 Freestyle Cruising ships, guests enjoy resort-style cruises with the most contemporary and modern fleets to date.
The acquisition of Prestige Cruises International is a welcomed undertaking for Norwegian Cruise Line Holdings, as Prestige Cruises are known for offering a more high-end cruising experience with Upper Premium and Luxury segments. Prestige Cruise International is the parent company of Oceania and Regent Seven Seas Cruises, which have both built themselves a reputation for offering exemplary quality cruising. The cruise lines have a limited capacity per ship, ranging from 490 to 1,250 guests. This beats the standard 3,000 plus passengers per ship. The focus on luxury—with superior accommodations, high quality service and gourmet cuisine—has driven the company to lead the industry in Net Yields. This will bolster Norwegian Cruise Line Holding’s ability to compete and capitalize on the high-end cruise line market.
The deal is expected to close by the end of the year.