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Cruise firm buying Windstar
Ambassadors International Inc., operator of seven cruise ships that mostly sail U.S. rivers, has agreed to buy Carnival Corp.’s Windstar Cruises unit.
Windstar’s three luxury vessels, with a combined capacity of 600 passengers, cruise the Mediterranean, Caribbean and Costa Rica, Newport Beach-based Ambassadors’ said.
“Windstar is an outstanding and unique cruise product and has garnered an extremely loyal following, however, Carnival Corporation & plc’s growth strategy is focused on expanding our core growth brands and opening new markets,” said Micky Arison, Carnival CEO. He added:
”Last year we made a decision to cease operation of UK’s Swan Hellenic and transfer its one ship to the Princess Cruises brand. Both of these are excellent products but simply do not fit into our future growth plans.”
Buying Windstar furthers Ambassadors’ plan to expand its small-ship cruise division and offer international voyages.
Selling Windstar allows Carnival to focus on its Seabourn Cruise Line, targeted at affluent travelers, according to reports.
Ambassadors will pay Carnival $19 million in cash, and Carnival will loan Ambassadors $60 million, payable over 10 years at 7% interest, with the Windstar ships as collateral.
Ambassadors also will assume $21 million in liabilities from Carnival, including deposits on reservations.
Report by David Wilkening
David
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