Royal Caribbean Group has entered into a definitive agreement to sell its Azamara brand to Sycamore Partners, a private equity firm, in an all-cash transaction of $201 million.
Sycamore Partners will acquire the entire Azamara brand, including its three-ship fleet and associated intellectual property. The transaction is expected to close in the first quarter of 2021. Royal Caribbean Group said the sale lets it 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 … and working to grow them as we emerge from this unprecedented period," said Richard D. Fain, chairman and CEO 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."
In conjunction with the transaction, Azamara Chief Operating Officer Carol Cabezas has been appointed president of the brand.
Azamara is an upscale, boutique brand created in 2007 with three R-class vessels built for now-defunct Renaissance Cruises. The Azamara Journey entered service in May 2007 and accommodates 690 passengers. Its sister ships, Azamara Quest and Amazara Pursuit each accommodate 702 guests.
The transaction will result in a one-time, non-cash impairment charge of approximately $170 million. The sale of Azamara is not expected to have a material impact on Royal Caribbean Group's future financial results.
Sycamore Partners, a private equity firm based in New York, specializes in consumer, distribution and retail-related investments and partners with management teams to improve the operating profitability and strategic value of their business. With approximately $10 billion in aggregate committed capital raised since its inception in 2011, Sycamore Partners' investors include leading endowments, financial institutions, family offices, pension plans and sovereign wealth funds.
According to its website, the firm's other investments include Staples, The Limited, Stuart Weitzman, Talbots and more.
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