Norwegian Cruise Line Holidays has agreed to acquire the parent company of Oceania Cruises and Regent Seven Seas Cruises, Prestige Cruises International, for $3 billion.
The deal was subject to speculation over the weekend and will see Norwegian offer distinct brands for premium and luxury guests.
According to reports, Norwegian said it will finance the deal with existing cash, new and existing debt facilities and the issuance of around 20.3m shares of common stock.
“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.
“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.
“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.”
Frank Del Rio, who will remain as chairman and chief executive of Prestige, said: “We are excited to become part of the Norwegian family and start a new chapter for our company.
“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.”
Apollo Management, which owns 20% of Norwegian Cruise Line, also set up Prestige Cruise Holidays in 2007 to manage Regent Seven Seas Cruises and Oceania Cruises.