Norwegian Cruise Line in $3bn deal with Prestige Cruises International

Norwegian Cruise Line has agreed to acquire Prestige Cruises International, the parent of Oceania Cruises and Regent Seven Seas Cruises in a deal valued at $3bn. To fund the agreement Norwegian are issuing 20.3m shares of NCLH common stock ($670m) to Prestige shareholders, which is equal to about 10% of current NCLH shares outstanding.

Norwegian president and CEO Kevin Sheehan said the companies, ”complementary strengths and skill sets will pave the way for new cross-selling opportunities, cross-brand collaboration, cross-business support, as well as joint partnerships.” They also estimate an immediate $25m will be generated in synergies from areas including joint purchasing and port agreements, with more opportunities to be realized in the next several years.

The acquisition creates a company with brands across the contemporary, upper-premium and luxury sectors. Norwegian currently owns 13 ships with a total of 34,500 berths and has four more new-builds on delivery between 2015 and 2019; while Prestige has eight ships and another arriving in 2016 and nearly 6,500 berths.

Prestige Cruises chairman and CEO Frank Del Rio commented, “We are excited to become part of the Norwegian family and start a new chapter for our company. With Oceania and Regent, we have built iconic brands with distinctive product offerings and strong customer loyalty. The combination is very compelling and will allow us to further enhance our renowned guest experience. We are looking forward to joining the Norwegian team and building upon the success that our three brands have already achieved.”