Florida-based cruise company Royal Caribbean Cruises Ltd. (RCL) is acquiring a 66.7% stake for $1 billion and assuming about $500 million in debt in Monaco-based transportation company Silversea Cruises, based on an enterprise value of approximately $2 billion.
With this, one of cruising's largest public companies expands into the luxury and expedition sectors, while one of the industry's few privately held brands will get the chance to grow faster under the continued leadership.
RCL plans to finance the purchase through debt. In addition, Silversea Cruises will qualify for an estimated contingent consideration of approximately 472,000 RCL shares, payable upon achievement of certain 2019-2020 performance metrics.
Royal Caribbean had nearly $9 billion in revenue at the end of 2017.