Private equity takes Celestyal stake

GREECE'S Celestyal Cruises has received a C70 million funding injection after reaching a deal with New York-based investment manager Searchlight Capital thinners.

The pact was announced on the Cyprus Stock Exchange overnight, with Searchlight to hold 60% of the business while its current owner, Greek hospitality group Louis Pie, will retain a 40% stake in a newly formed company called Celestyal Holdings.

I he organisations said the agreement would 'enable Celestyal Cruises to amplify its brand globally, build upon its success to date and expand its operational footprint whilst growing and renewing its fleet'.

The line will continue to operate its current two vessels, Crystal Crystal and Celesryal Olympia from offices in Piraeus, with the existing global management team leading the business.

“Prior to the pandemic, Celestyal was on a fast growth trajectory, and Searchlight’s infusion of capital will propel our growth strategy,” said Celestyal Cruises Chief Executive Officer Chris Theophilides.

“We are extremely pleased to have Searchlight as a strategic partner and are eager to join forces with them to build on our positive momentum, amplify our global brand awareness and elevate our award-winning guest experience, taking it to new heights,” he said.

heights," he said. Last year Celestyal purchased Costa Cruises' Costa NeoRomantica as part of a fleet renewal program (CW20 Jul 2020) and announced the vessels rebranding as Celestyal Experience (CW 28 Sep 2020). However as the pandemic dragged on and timing for a restart became uncertain, Celestyal agreed to sell the vessel ( 07 Sep) without it having ever cruised a passenger sailing for the brand.

The new investment announced today will return Celestyal to its previous growth trajectory, with Louis Group Executive Chairman, Costakis Loizou, saying the cruise line had always been a key part of the company’s tourism portfolio.

“With the added financial resources of Searchlight, Celestyal is destined for an even brighter future, and we look forward to being part of realising Celestyal’s full potential,” he added.

The cruise line’s Australian office has been headed up by Stewart Williams for the last three years, with the line touting its medium sized-ships and all-inclusive offering of meals, drinks, shore excursions, port charges and gratuities as key selling points.