The Royal Caribbean Group has completed the sale of its boutique Azamara brand to Sycamore Partners, a private equity firm specializing in consumer, retail and distribution investments, in an all-cash transaction for $201 million.
The sale includes Azamara's three-ship fleet and associated intellectual property, said a press release on Friday (March 19).
The deal will allow Royal Caribbean to focus on expanding its Royal Caribbean International, Celebrity Cruises and Silversea Cruises brands, the company said.
"This creates huge opportunities for all parties," said Richard D. Fain, chairman and CEO of Royal Caribbean Group. "In fact, as we are inking this deal today, Azamara already has added a fourth ship to their fleet. I am confident that the brand's success and growth trajectory will continue under the stewardship of Sycamore."
According to a previous report in the Wall Street Journal, the sale wasn’t driven by financial reasons and that Royal Caribbean was considering selling Azamara before the pandemic struck.
"We look forward to guiding and supporting Azamara in its next phase of growth," said Stefan Kaluzny, Managing Director of Sycamore Partners. "The brand's high guest engagement, personalized service and unique Destination Immersion strategy, position it strongly for continued growth in the upmarket space."
Perella Weinberg Partners LP served as financial advisor to Royal Caribbean Group and Freshfields Bruckhaus Deringer LLP provided legal counsel. Kirkland & Ellis LLP provided legal advice to Sycamore Partners.
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