Royal Caribbean Group on Tuesday morning announced that it has agreed to sell Azamara to Sycamore Partners, a private equity firm, for $201 million.
The deal ends Azamara’s run as part of Royal Caribbean Group, a place it has occupied since it officially launched as Azamara Club Cruises in 2009. The deal includes the entire Azamara three-ship fleet along with all of its associated intellectual property.
The news continues a four-year development of the Royal Caribbean Group portfolio. In June 2018, the Group acquired a major stake in Silversea and then a year later announced that Azamara would be rebranded with a new name (removing the "Club Cruises" moniker), logo, and destination focus.
According to Royal Caribbean Group’s statement on Tuesday, the deal also includes the transition of Azamara’s “employees, customers, and other stakeholders,” with Azamara’s COO Carol Cabezas, the highest ranking Azamara employee after former CEO Larry Pimentel resigned in April, taking over as president of the brand.
Royal said the sale was made in order to place “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,” Royal Caribbean Group Chairman and CEO Richard Fain said in the statement.
“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.”
Sycamore Partners, a New York-based equity firm, currently has a portfolio that includes retail investments such as Staples, marine retailer Pure Fishing, software provider CommerceHub, and women’s apparel retailer The Limited.
Sycamore Managing Director Stefan Kaluzny said that “we are pleased that Royal Caribbean Group has entrusted Sycamore to support Azamara in its next phase of growth.”
“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.”