Royal Caribbean completes sale of boutique brand Azamara

Image: Azamara

Royal Caribbean Group (NYSE: RCL) reports that it completed the sale of its 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 included the boutique brand’s three-ship fleet and associated intellectual property.

Royal Caribbean says the strategic deal allows the Group to focus on expanding its Royal Caribbean International, Celebrity Cruises and Silversea Cruises brands.

“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 its fleet. I am confident that the brand’s success and growth trajectory will continue under the stewardship of Sycamore.”

“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.

Azamara’s fourth ship is the former Pacific Princess, which entered service in 1999 as R3 for Renaissance Cruises. Azamara’s current fleet includes three other former Renaissance sister ships.

“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.