Royal Caribbean Group announced it had entered into a definitive agreement to sell its Azamara Cruises brand to Sycamore Partners in an all-cash carve-out transaction for US$201 million, subject to certain adjustments and closing conditions.
Sycamore Partners is a private equity firm specializing in consumer, retail, and distribution investments. It will acquire the entire Azamara brand, including its 3-ship fleet and associated intellectual property. The transaction is expected to close in the first quarter of 2021.
Richard D. Fain, Chairman and Chief Executive Officer of Royal Caribbean Group, said:
“Our strategy has evolved into placing more of our resources behind three global brands, Royal Caribbean International, Celebrity Cruises and Silversea, and working to grow them as we emerge from this unprecedented period.
“Even so, Azamara remains a strong brand with its own tremendous potential for growth, and Sycamore’s track record demonstrates that they will be good stewards of what the Azamara team has built over the past 13 years.”
Azamara’s value proposition and operations remain consistent under the arrangement, and Royal Caribbean will work in close collaboration on a seamless transition for Azamara Cruises' employees, clients, and other stakeholders.
The transaction will result in a one-time, non-cash impairment charge of ~US$170 million. Azamara's sale is not expected to have a material impact on the RCG's future financial results.