Norwegian Cruise to acquire parent of Oceania, Regent lines

The world’s third-largest cruise ship company is about to get bigger.

Miami-based Norwegian Cruise Line Holdings announced Tuesday morning that it will acquire Prestige Cruises International, the parent of upscale Oceania Cruises and luxury Regent Seven Seas Cruises for more than $3 billion.

The deal, expected to close in the fourth quarter, adds eight ships to Norwegian’s fleet of 13 vessels and gives the company access to a built-in audience accustomed to paying higher fares for more inclusive cruise experiences.

“The acquisition of Prestige represents an extraordinary opportunity for Norwegian Cruise Line to expand our market presence by adding two established, award-winning brands in the upscale cruise segment with loyal followings,” said Norwegian Cruise Line CEO Kevin Sheehan in a statement.

Prestige chairman and CEO Frank Del Rio will remain CEO of Prestige, which is based in Doral.

“We are excited to become part of the Norwegian family and start a new chapter for our company,” Del Rio said in the statement. “With Oceania and Regent, we have built iconic brands with distinctive product offerings and strong customer loyalty. The combination is very compelling and will allow us to further enhance our renowned guest experience.”

Reuters reported that a deal was in the works over the weekend.

Norwegian has long been a distant third, size-wise, to industry leaders Carnival Corp. and Royal Caribbean Cruises. Carnival operates about 100 ships under 10 brands, while Royal Caribbean’s fleet includes 42 ships under several North American and European brands.

Norwegian said it will finance the acquisition with existing cash, new and existing debt and the issuance of approximately 20.3 million shares of its common stock. Prestige is owned by private equity firm Apollo, which is also a major Norwegian shareholder.

“The combination of three distinct brands, each serving a different market segment, under one umbrella immediately creates an industry-leading cruise operator with an unmatched growth trajectory and a portfolio of products that allows us to appeal to guests at every stage of their life cycle,” Sheehan said in the statement. “We are fully committed to retaining the brand propositions, guest experiences and cultures of the Norwegian, Oceania and Regent brands that have allowed each to realize such success.”