Cruise Hive reported yesterday that’s it was rumor that Norwegian Cruise Lines is about to purchase Prestige Cruise Holdings the owner of Regent Seven Seas Cruises and Oceania Cruises. Well now that rumor is official as the cruise line has announced an agreement.
The total amount of the purchase is just over $3 Billion as we previously reported. NCL will enter the luxury cruise market from this purchase and becoming a major rival to Carnival Corporation and Royal Caribbean international.
“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.
Prestige Cruise Holdings will add eight vessels to NCL but it;s expected that Regent Seven Seas and Oceania Cruises will continue to operate under current brands. Norwegian Cruise Line will bring a wider cruise choice to cruisers now that it will operate within in different markets.
“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.”
“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.”
The purchase is still subject to approval which should be complete by the fourth quarter of 2014.
Photo By: Regent Seven Seas Cruises