Arnold Donald, president and CEO of Carnival Corporation, sold 62,639 company shares on Tuesday at a price of $21.12 for proceeds of $1,322,935, according to an SEC filing.
While the timing was less than ideal as the company remains out of service, the transaction was relatively routine.
Donald sold Carnival shares in mid-January in 2020, although at a much higher per-share price before the onset of the COVID-19 pandemic.
Azamara Quest.
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 travellers as the cruising industry recovers over time.”
Azamara’s value proposition and operations will remain consistent under the new arrangement, and Royal Caribbean Group will work in close collaboration on a seamless transition for Azamara employees, customers and other stakeholders. In conjunction with the transaction, Azamara Chief Operating Officer Carol Cabezas has been appointed President of the brand.
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 the Royal Caribbean Group’s future financial results. Perella Weinberg Partners LP served as financial advisor to Royal Caribbean Group and Freshfields Bruckhaus Deringer LLP provided legal counsel. Kirkland & Ellis LLP provided legal advice to Sycamore Partners.
Royal Caribbean Cruises is selling part of its interest in its Spanish and French cruise operations for an undisclosed sum.
Madrid-based private equity firm Springwater is taking a 51% stake in Pullmantur and Croisières de France, leaving the US cruise giant with a 49% holding through a new joint venture.
Royal Caribbean will retain full ownership of the ships and aircraft currently operated by the two brands, which will be leased into the joint venture.
Chairman and chief executive, Richard Fain, said: “Pullmantur and CDF have a long history of offering authentic, localised cruise vacations to their home markets.
“We look forward to the new focus that this joint venture with Springwater will bring to these companies as they seek to grow.”
He added: “Given the signs of recovery we have seen in the Spanish economy, as well as increased interest in cruising from tourists in France, we think this is the right time to bring together the extensive experience of our deeply valued employees at Pullmantur and CDF with the local travel and tourism expertise of the Springwater team.
“Springwater’s local management presence in Madrid, coupled with RCL’s long-standing history in cruise operations, will provide the foundation for improved returns in the future.”
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