Royal Caribbean is to sell Azamara, its destination immersion brand.
The deal, which values the company at $201 million, sees Azamara change hands to Sycamore Partners, a private equity firm. The transaction will result in a one-time, non-cash impairment charge of approximately $170 million.
Royal Caribbean said that the sale wasn’t driven by financial reasons and that it had considered selling the brand before the crisis.
“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 Richard D. Fain, Chairman and Chief Executive Officer of Royal Caribbean Group. “Even so, 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.”
“We are pleased that Royal Caribbean Group has entrusted Sycamore to support Azamara in its next phase of growth,” said Stefan Kaluzny, Managing Director of Sycamore Partners. “We are excited to partner with the Azamara team and build on their many years of success serving the brand’s loyal customers. We believe Azamara will remain a top choice for discerning travelers as the cruising industry recovers over time.”