Genting Hong Kong today announced that it has entered into an agreement to acquire Crystal Cruises, Inc. from Nippon Yusen Kabushiki Kaisha of Japan (NYK). The acquisition is expected to close in the second quarter of 2015.
“Crystal Cruises offers the epitome of luxury cruising and the service standard which all other cruise lines aspire to,” said Tan Sri Lim Kok Thay, Chairman, CEO and Acting President of GHK.
“The current management team and crew will continue to lead Crystal Cruises. Genting will provide financial resources and proven expertise in innovative ship design to build a new ship that will set the highest standard in luxury cruise ships that together with Crystal’s six-star legendary service will reinforce Crystal’s reputation as the world’s leading luxury cruise line for decades to come.”
Genting introduced cruising in Asia under the Star Cruises brand in 1993 and after acquiring Norwegian Cruise Line in 2000 reinvigorated the brand with the concept of “Freestyle Cruising."
“After 25 successful years with NYK, we are excited to have Genting Hong Kong as the new owner of Crystal Cruises,” said Edie Rodriguez, President and COO, Crystal Cruises.
“The proposed expansion of our fleet will present our loyal Crystal Society members and new luxury cruise guests with more itinerary options, accommodation choices and exceptional vacation experiences, as we continue to position Crystal as the innovative leader in global luxury cruising. Additionally, Crystal’s veteran leadership, management and crew will continue to focus on our award-winning guest service and our strong partnership with the travel agent community - which now has a greater opportunity to grow their business with a larger menu of Crystal product offerings.”
Under the terms of the agreement, GHK will acquire Crystal Cruises for $550 million in cash, which is subject to certain adjustment items to be ascertained after the closing.
Crystal Cruises’ two ships have approximately 1,992 lower berths and the consideration has been determined on a cash-free and debt-free basis, translating into enterprise value per lower berth of approximately US$276,000.