Morgan Lewis Advises Silversea Cruises in Investment by Royal Caribbean

BOSTON and LONDON, June 14, 2018: Morgan Lewis is advising Silversea Cruises, a privately-owned European business recognized as the acknowledged leader in the luxury and expedition cruise line industry, in an investment by Royal Caribbean Cruises Ltd, a New York Stock Exchange-listed global cruise vacation company that owns and operates three global cruise brands.

Under the terms of the agreement announced today, Royal Caribbean will acquire a 66.7% equity stake in Silversea Cruises based on an enterprise value of approximately $2 billion. The purchase price of the equity being acquired is approximately $1 billion.

The strategic rationale for the partnership includes

• driving long-term capacity growth in the burgeoning luxury and expedition markets at a much larger scale than what Silversea would achieve independently;
• diversifying Royal Caribbean’s portfolio and increasing its expedition offerings by adding a premiere ultra-luxury brand;
• leveraging the global footprint of the combined companies to generate demand and increase vacation and destination options for the guests of both companies; and
• realizing significant synergies related to global market access, supply chain, purchasing power and other economies of scale.

The transaction is expected to be completed later in the year, subject to customary closing conditions and regulatory approval.

A multi-jurisdictional Morgan Lewis team is led by corporate partners Carl A. Valenstein (Boston) and Tom Cartwright (London). A combined team of Morgan Lewis lawyers in London, Boston, and New York are advising Silversea on corporate, regulatory, finance, intellectual property, tax, labor and employment, and antitrust/competition aspects of the transaction.

Read the joint press release issued by Silversea Cruises and Royal Caribbean Cruises Ltd.