The acquisition of Prestige Cruise Holdings will gve Norwegian Cruise Line Holdings a 46% stake in the upper end of the cruise market, said Kevin Sheehan, president and ceo of the Norwegian group.
Prestige is the parent company of Oceania Cruises that operates in the upper end of the premium market and Regent Seven Seas Cruises, which is a luxury operator.
Sheehan said that Norwegian had been transformed since 2008, when the private equity group Apollo acquired 50% stake in the company. As it now has delivered an improved EBITDA for 24 consecutive quarters, the time had come to expand it beyond the contemporary market segment of Norwegian Cruise Line.
The choice was between launching a new brand or an acquisition. To acquire Prestige was a natural choice as Apollo had acquired that company as well, so that the board and senior management of both management had close contacts.
The new three brand Norwegian group will cover the age range of passngers from families with small children to retired people and it also covers all segments of the industry. However, the passenger experience on each brand will not be affected.
The acquisition will also expand the geographical reach of Norwegian as vessels of Regent and Oceania call at ports which Norwegian does not visit at the moment. It will be financially accreditive from the start, Sheehan said.
Sheehan noted that the acquisition "married well" by bringing togetherthe best brands in their respective market segments and the best practises would be employed from each company. Norwegian Cruise Line itself would benefit as the acquisition opened the doors to agents that focus on the top end of the business, which are important for its Haven accommodation, but which it has had difficulties in reaching so far.
