Apollo to Buy Regent Seven Seas Cruises From Carlson (Update2) (Bloomberg.com)
Apollo to Buy Regent Seven Seas Cruises From Carlson (Update2) (Bloomberg.com)
Dec. 10 (Bloomberg) -- Apollo Management LP, the private- equity firm run by Leon Black, agreed to buy Regent Seven Seas Cruises in a transaction valued at about $1 billion, its third investment in a cruise-ship operator this year.
Regent Seven Seas Cruises is changing hands and the new owner, Apollo Management LP could finance more ships for the Fort Lauderdale-based luxury line.
The two companies announced a long-rumored deal on Monday for Apollo to acquire Regent from family-run Carlson Cos., of Minneapolis. The terms of the deal weren't disclosed, but financial Web site CFO.com, which broke news of the deal in November, put the price at $1 billion.
Thanks for posting this! For a while ... after being in ports with a Regent ship many times and liking the folks and their positive comments ... until some some policy changes were make.
For sure ... we'd love to have any updates when Apollo takes over!
Here's the text of the press release from Oceania's website:
APOLLO MANAGEMENT L.P. ACQUIRES REGENT SEVEN SEAS CRUISES
MIAMI, FLA., Dec. 10, 2007 – Minneapolis-based Carlson and Apollo Management L.P. (Apollo) today announced that Apollo has agreed to acquire Carlson’s Regent Seven Seas Cruises operations. The acquisition is expected to be completed in the first quarter of 2008, subject to normal conditions for a transaction of this type, including regulatory approval. The cruise operations will continue as a key part of the global Regent brand.
Regent Seven Seas Cruises and Oceania Cruises will be placed under the ownership of Prestige Cruise Holdings, Inc. (PCH), a corporation controlled by Apollo which will manage certain cruise portfolio assets of Apollo. NCL Corporation will remain a separate holding outside of PCH.
Regent Seven Seas Cruises will remain a wholly independent brand under the guidance of Mark Conroy, president of Regent Seven Seas Cruises, and will continue to operate from its Fort Lauderdale, Florida headquarters, and Oceania Cruises will remain in its Miami headquarters, headed by Bob Binder, president of Oceania Cruises. Both Binder and Conroy will report directly to Frank Del Rio, chairman and CEO of Prestige Cruise Holdings
The transaction is part of a unified strategy undertaken by Apollo and Carlson to expand their respective core cruise and hotel operations, and become the world’s preeminent operators of luxury hotels, resorts and cruises. Carlson will retain ownership of the master Regent brand, along with the worldwide operations of Regent Hotels & Resort.
“Through this proposed investment, Apollo has demonstrated its deep commitment to the Regent brand and the continuing growth of the Regent cruise line fleet,” said Carlson Chairman and Chief Executive Officer Marilyn Carlson Nelson. “As owners of the Regent brand, we remain committed to expanding its scope and success both on land and at sea. We are confident the Regent cruise brand will continue to develop along with and lead the industry segment, which has expanded dramatically since 1992, when we launched our first ship. The potential for continued expansion of the luxury Regent hotel brand, and our entire hotel portfolio, is enormous.”
Apollo’s acquisition of Regent Seven Seas Cruises strengthens its position in the cruise industry with the addition of an award-winning luxury cruise brand to its cruise portfolio. Regent Seven Seas Cruises will continue to focus on the luxury segment of the marketplace by offering a six-star, all-inclusive experience, and Oceania Cruises will continue to lead the Upper Premium segment.
“Regent Seven Seas Cruises offers an exceptional product, and its superb shipboard and shoreside teams have built an enviable reputation as the foremost luxury cruise brand. The brand awareness and market presence of Regent Seven Seas Cruises and Oceania Cruises will offer our discerning travelers and travel agents worldwide the most vibrant and diverse range of cruise experiences, serving the broadest spectrum of spectacular destinations,” stated Frank Del Rio, chairman and CEO of Prestige Cruise Holdings.
Lehman Brothers Inc. served as financial advisor to Prestige Cruise Holdings on the transaction, and Goldman, Sachs & Co. served as financial advisor to Carlson.
Carlson announced today that it has named Bjørn Gullaksen as president, Regent Luxury Group. Gullaksen has most recently served as executive vice president for Carlson Hotels Worldwide Managed Hotels & Resorts in the Americas. He will continue to oversee the managed hotel and resort operations in his new role. A hospitality industry veteran with more than 30 years of experience, he previously has served as the company’s executive vice president of Full Service Hotels, including Radisson Hotels & Resorts and Park Plaza Hotels & Resorts.
Under Gullaksen, a brand council, with leadership from the cruise company and Carlson Hotels Worldwide, will oversee the luxury standards of the Regent brand in all of its applications globally.
Jay Witzel, president and CEO of Carlson Hotels Worldwide and CEO of Regent, said Regent Hotels & Resorts will continue to grow globally as a leading luxury brand in the hotel industry. Following the completion of the cruise line transaction, Regent Hotels & Resorts will be operated as part of Carlson Hotels Worldwide, one of the world’s top 10 hotel companies. The current global portfolio includes Regent properties in Beijing; Shanghai; Singapore; Taipei; Berlin; Zagreb, Croatia; and Turks and Caicos. The company’s North American expansion plans also include The Regent Bal Harbour, Florida, scheduled to open in early 2008 and The Regent Boston at Battery Wharf, also scheduled to open in 2008. Future global developments include properties in Bordeaux, France; Bangkok, Thailand; The Republic of Maldives; Abu Dhabi, United Arab Emirates; Papagayo, Costa Rica; and Dubrovnik, Croatia.
Q: Why did Apollo purchase Regent Seven Seas Cruises?
A: Apollo recognizes Regent Seven Seas Cruises as an extremely successful and appealing brand that possesses tremendous growth potential. Regent Seven Seas Cruises and Oceania Cruises have strong brand recognition within their respective market segments and together they complement one another offering many exciting new opportunities for both lines’ guests and travel partners.
Q: Are Regent’s hotel operations included in this transaction?
A: No, Regent Hotels & Resorts is not being purchased and remains under the aegis of the Carlson Companies.
A: Prestige Cruise Holdings (PCH) is the corporation which will own and manage certain cruise-related assets within Apollo’s broader cruise portfolio and of which Apollo is the majority shareholder. In turn, PCH owns 100% of Oceania Cruises and will own 100% of Regent Seven Seas Cruises. Bob Binder, President of Oceania Cruises, and Mark Conroy, President of Regent Seven Seas, will report directly to Frank Del Rio, Chairman & CEO of PCH.
Q: Is NCL Corporation part of Prestige Cruise Holdings?
A: No, NCL Corporation is a separate investment by Apollo and is not an asset of PCH
Q: Are Oceania Cruises and Regent Seven Seas Cruises being merged
A: No, both Oceania Cruises and Regent Seven Seas Cruises will remain independent brands and operate from their separate headquarters in Miami and Fort Lauderdale respectively.
Q: Will PCH own all of the ships within the Regent Seven Seas Cruises fleet?
A: The purchase includes Seven Seas Voyager, Seven Seas Mariner and Seven Seas Navigator. Regent Seven Seas Cruises will continue to operate the French Polynesia-based Paul Gauguin under the current contractual agreement and the 198-guest Explorer II on a seasonal basis in Antarctica.
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Apollo to Buy Regent Seven Seas Cruises From Carlson (Update2) (Bloomberg.com)
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Apollo to Buy Regent Seven Seas Cruises From Carlson (Update2) (Bloomberg.com) 
Thanks for posting this! For a while ... after being in ports with a Regent ship many times and liking the folks and their positive comments ... until some some policy changes were make.
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