Norwegian Cruise Line (NCL) announced it is buying Prestige Cruises International, holding company of Oceania and Regent Seven Seas Cruises. The move brings NCL into line with its large peers Carnival Cruise Lines (CCL) and Royal Caribbean Cruise Lines (RCCL) by adding upscale brands to diversify their offerings.
The three billion dollar deal adds eight ships to the collective NCL fleet and continues strong moves the line has been making in recent years. NCL had underachieved under the ownership of Star Cruises. Star had entered into a partnership with Apollo Global Management after it had failed to gain traction against the major lines. Apollo eventually bought-out Star and since has invested heavily despite many analysts thinking the move was a quick turn-around play. Apollo took NCL public in 2013 and that is aiding in the purchase of Prestige to the tune of 1.8 billion in equity.
What comes next? The management team at NCL has eyes on the most obvious paths such as savings on operational costs, marketing and sales opportunities, etc.