Windstar Cruises to be sold to Ambassadors International
Carnival Corporation & plc has signed an agreement to sell its Windstar Cruises brand to Ambassadors International Inc. Under the terms of the agreement, Windstar will be sold for $100m, $40m of which is payable in cash and assumption of liabilities, and Carnival will provide mortgage financing for $60m. The loan will be payable over 10 years at 7% interest, collateralised by the three Windstar ships.
Commenting on the news Carnival chief Micky Arison said: ‘Windstar is an outstanding and unique cruise product and has garnered an extremely loyal following, however, Carnival Corp’s growth strategy is focused on expanding our core growth brands and opening new markets.’
The group made the decision to exit from the niche cruise business some time ago he noted and the sale of Windstar is in line with that strategy. ‘Last year we made a decision to cease operation of UK’s Swan Hellenic and transfer its one ship to the Princess Cruises brand. Both of these are excellent products but simply do not fit into our future growth plans,’ he explained.
Stein Kruse, president and ceo, Holland America Line, of which Windstar is a subsidiary, said the transaction has been structured to ensure a smooth transition for all parties. ‘Holland America Line will continue to operate the company through a transitional services agreement in the short term which includes vessel, reservations and other operational functions,’ Kruse added.
Windstar Cruises’ three ships include the 312-passenger Wind Surf and the 148-passenger Wind Star and Wind Spirit.
Carnival expects the transaction to close in the second quarter of 2007, subject to any applicable regulatory requirements, and to be neutral to earnings on an annualized basis for the 12-month period following closing.
Ambassadors International, Inc. is a cruise, marine, and travel and event company. Through Ambassadors Cruise Group, the company operates Majestic America Line, river and coastal cruising company. The company is also a global leader in providing construction and consulting services to marina owners through its Ambassadors Marine Group subsidiary.
Commenting on the news Carnival chief Micky Arison said: ‘Windstar is an outstanding and unique cruise product and has garnered an extremely loyal following, however, Carnival Corp’s growth strategy is focused on expanding our core growth brands and opening new markets.’
The group made the decision to exit from the niche cruise business some time ago he noted and the sale of Windstar is in line with that strategy. ‘Last year we made a decision to cease operation of UK’s Swan Hellenic and transfer its one ship to the Princess Cruises brand. Both of these are excellent products but simply do not fit into our future growth plans,’ he explained.
Stein Kruse, president and ceo, Holland America Line, of which Windstar is a subsidiary, said the transaction has been structured to ensure a smooth transition for all parties. ‘Holland America Line will continue to operate the company through a transitional services agreement in the short term which includes vessel, reservations and other operational functions,’ Kruse added.
Windstar Cruises’ three ships include the 312-passenger Wind Surf and the 148-passenger Wind Star and Wind Spirit.
Carnival expects the transaction to close in the second quarter of 2007, subject to any applicable regulatory requirements, and to be neutral to earnings on an annualized basis for the 12-month period following closing.
Ambassadors International, Inc. is a cruise, marine, and travel and event company. Through Ambassadors Cruise Group, the company operates Majestic America Line, river and coastal cruising company. The company is also a global leader in providing construction and consulting services to marina owners through its Ambassadors Marine Group subsidiary.
posted by Gary M Pollard at
12:10 PM
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