NORWEGIAN Cruise Line is diversifying its offerings and improving its economies of scale through the purchase of Prestige Cruises International.
Earlier this week Norwegian announced that it had entered a definitive agreement to buy Prestige, parent company of the upper-premium Oceania Cruises and luxury Regent Seven Seas Cruises, for US$3.0 billion.
The transaction includes the acquisition of Prestige’s debt as well. Subject to regulatory approvals, the transaction is expected to be completed in 4Q2014.
Kevin Sheehan, CEO, Norwegian Cruise Line, said: “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.”
He highlighted that Norwegian would have a deeper bench of talent, possibilities for cross-selling, cross-branding, and cross-business support with the deal.
Prestige operates eight ships – five for Oceania, three for Regent – and 6,500 berths. Regent is also slated to take the delivery of an additional ship in summer 2016.
Sheehan added: “The combination of three different 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.
“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 realise such success.”
