Royal Caribbean to Sell Azamara Brand for $201 Million
Cruise operator Royal Caribbean Group said on Tuesday it reached a deal to sell its Azamara brand to private-equity firm Sycamore Partners for $201 million in cash, as it grapples with biting impacts of the COVID-19 pandemic.
Sycamore Partners will acquire the entire Azamara brand, including its three-ship fleet—Azamara Quest, Azamara Journey and Azamara Pursuit—and associated intellectual property. In conjunction with the transaction, Azamara Chief Operating Officer Carol Cabezas has been appointed President of the brand.
Royal Caribbean said it will incur a one-time, non-cash impairment charge of approximately $170 million, but claimed the transaction is not expected to have a material impact on its financial results.
The transaction is subject to certain adjustments and closing conditions and is expected to close in the first quarter of 2021.
Royal Caribbean Group noted the transaction allows it to focus on expanding its Royal Caribbean International, Celebrity Cruises and Silversea brands.
“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,” explained Richard D. Fain, chairman and CEO of Royal Caribbean Group.