The Royal Caribbean Group said it was selling its luxury cruise line Azamara for $ 201 million in cash to private equity firm Sycamore Partners, a move that would allow the company to focus on core operations after nearly a year since the coronavirus outbreaks on board disrupted travel in the US
The divestment is the latest reduction move by a cruise line during the Covid-19 pandemic, as operators look for additional sources of money. Royal Caribbean’s chief financial officer, Jason Liberty, said the deal was not motivated by financial reasons and that he considered selling the brand before the health crisis.
The company will seek to expand its major brands Royal Caribbean International, Celebrity Cruises and Silversea after the sale, according to Royal Caribbean, which also operates TUI Cruises and Hapag-Lloyd Cruises in a joint venture. According to the transaction, which is due to be completed in the first quarter, Sycamore will acquire Azamara’s three ships and intellectual property, such as the brand’s logo and slogan, the company added.
Royal Caribbean announced in December that it had sold two ships from its Royal Caribbean International fleet. The company will withdraw from the agreement with three vessels less than its fleet of 61 vessels in 2019, after receiving two ship deliveries and leaving a joint venture for Pullmantur Cruceros, which filed for reorganization under Spanish insolvency laws in 2020, a spokesman said.
“This allows us to really prioritize our resources, which are not just financial resources – it is also the mind and time of management,” Liberty told The Wall Street Journal.