Royal Caribbean Group has announced it is selling its Azamara line to private equity firm Sycamore Partners for $282 million in cash, to focus more on its bigger brands as the cruise operator deals with the impact of the COVID-19 pandemic.
Sycamore would acquire Azamara’s three-ship fleet and associated intellectual property, Royal Caribbean confirmed on Wednesday.
The company said the deal would allow it to focus on expanding its Royal Caribbean International, Celebrity Cruises and Silversea brands, which as of its latest annual filing operated more ships than Azamara.
Royal Caribbean would incur a one-time, non-cash impairment charge of about $238 million, even as it said the sale would not have a material impact on its financials.
The deal is expected to close in the first quarter of 2021.
Cruise operators have been rushing to shore up cash reserves over the last few months as COVID-19 brought the industry to a standstill.
Azamara Journey has been a familiar sight in New Zealand waters, operating cruises from and around Aotearoa up until the beginning of the pandemic.