Ambassadors to acquire Windstar Cruises

[Jason]

Ambassadors to acquire Windstar Cruises[/size]

source: e-travel blackboard

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Ambassadors International has today announced a definitive agreement to acquire Windstar Cruises, a luxury small-ship cruise offering, from the Holland America Line.

Holland American Line, a unit of Carnival Corporation, is expected to hand over the three-ship-fleet cruise line to Ambassadors in April this year, subject to approval, at USD100 million in cash and capital.

Joe Ueberroth, Ambassadors International Chairman and CEO said, "We are pleased to be acquiring such an iconic brand from Holland America Line. As we now enter the international cruising segment, we benefit from the quality and expertise that Holland America Line brought to the operation of Windstar Cruises."

The Windstar Cruises ships, which include the 312-passenger Wind Surf, and sister ships Wind Star and Wind Spirit both carrying 148 passengers, are all motor-sail yachts, which carries the Windstar concept of 'Casual Elegance'.

David Giersdorf, Ambassadors Cruise Group President said, "We are committed to operate Windstar as it exists today, including its published itineraries, while we take steps to further improve the exceptional experience for our guests. We look forward to welcoming the extraordinary officers, crew and personnel of Windstar Cruises to our family, which extends our fleet to ten ships and approximately 2,200 passenger berths."

Featuring itineraries in the Mediterranean during the spring, summer and autumn, and cruises in the Caribbean and Costa Rica in winter, the company is currently undergoing renovations on its fleet. Wind Surf has just finished its refurbishments in late 2006, and Wind Star and Wind Spirit are scheduled for their renovations later this year.

Under the terms of the agreement, Ambassadors International Cruise Group, LLC, a wholly-owned subsidiary of Ambassadors International, Inc., will acquire Windstar Sail Cruises Limited for consideration approximating $100 million. The consideration in the transaction will be comprised of approximately $19 million in cash, $60 million in seller financing and the assumption of a working capital deficit of approximately $21 million. The $60 million in seller financing will be payable over ten years at 7% and be collateralized by the three ships.

[JoeyandDavid]

interesting..... I wonder why HAL sold this brand

[TheSkipper]

Joey,

I'm guessing they sold because this is a very limited and specialized market which does not really fit into their overall marketing plans. These ships really need targeted marketing which is difficult for a large cruiseline.

This small segment would have to carry it's share of the overall corporate overhead and structured that way would be hard pressed to generate the numbers HAL needs.

As I said just a guess.