Royal Caribbean To Sell Azamara Brand To Sycamore Partners

Royal Caribbean Group today announced it has entered into a definitive agreement to sell its Azamara brand to Sycamore Partners, a private equity firm specializing in consumer, retail and distribution investments, in an all-cash carve-out transaction for $201 million, subject to certain adjustments and closing conditions.

Sycamore Partners will acquire the entire Azamara brand, including its three-ship fleet and associated intellectual property. The transaction is subject to customary conditions and is expected to close in the first quarter of 2021. Royal Caribbean Group noted the transaction allows it to focus on expanding its Royal Caribbean International, Celebrity Cruises and Silversea 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 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.”
Cruise Industry News

Carol Cabezas: ‘Azamara Sale is a Win-Win-Win’

The Chief Operating Officer of Azamara, Carol Cabezas, has explained the sale of Azamara to a private equity firm, Sycamore Partners, with increasing the value of the cruise line’s product and driving the brand forward.

“Sycamore Partners, which has invested in many upscale consumer brands, is known for identifying great brands that need flexible funding to grow and succeed,” Cabezas said in a video address published on the brand’s official website.

“Sycamore’s strategy is to partner with existing management to nurture companies for growth and invest in upscale companies. The priority is to increase the value of our product. So, it’s a win-win-win,” she added.

According to Cabezas, nothing is currently expected to change for Azamara’s customers.

“There is no impact on your current bookings, future cruise credits, refunds or the availability of your travel advisor. Also, our website and care center agents remain open for business, and I encourage you to start planning your next cruise with us,” she said, before adding that that the entire team will stay with Azamara, including customer care staff and crew.

“We commit to keeping the brand elements that make us Azamara, your brand of choice with immersive experiences that elevate vacation to lifestyle and superior service throughout the journey. With Sycamore, we intend to rapidly expand these to offer more destinations and portfolio choices at every step along the way. We’re only going to get better,” Cabezas stated.

Azamara will adopt the same health and safety protocols as the Royal Caribbean Group, Cabezas said in a statement. These were developed by a group of public health experts at the Healthy Sail Panel.
Cruise Industry News