Azamara sold by Royal Caribbean

ROYAL Caribbean Group has entered into a definitive agreement to sell its Azamara brand to private equity company Sycamore Partners.

The all-cash, carve-out transaction is worth US$201m, and is subject to adjustments and closing conditions.

Sycamore will acquire the entire brand, including its three-ship fleet and associated intellectual property, with the transaction expected to close later in the first quarter of this year.

The sale is not expected to have a material impact on Royal Caribbean Group’s future financial results.

Azamara’s value proposition and operations will remain consistent under the new arrangement, and Royal Caribbean Group will work in close collaboration to transition Azamara employees, customers and other stakeholders to the new ownership.

The cruise line recently expanded its local sales team from one to four, all of whom are expected to be retained following the transaction (CW 16 Oct 2020), which will also see Azamara Chief Operating Officer Carol Cabezas (pictured) appointed President of the brand.

The details of future cruise credit arrangements under Sycamore are unclear, with the company declining to comment on the matter.

Royal Caribbean Group noted the transaction allows it to focus on expanding its Royal Caribbean International, Celebrity Cruises and Silversea Cruises brands.

“Our strategy has evolved into placing more of our resources behind three global brands, Royal Caribbean International, Celebrity Cruises and Silversea, and working to grow them as we emerge from this unprecedented period,” said Royal Caribbean Group Chairman & Chief Executive Officer Richard Fain.

“Azamara remains a strong brand with its own tremendous potential for growth, and Sycamore’s track record demonstrates that they will be good stewards of what the Azamara team has built over the past 13 years,” he said.

The cruise line has paused cruising until 01 May, planning to return with a 14-night Black Sea sailing on Azamara Quest.