Apollo in $1bn cruise deal(3)

Apollo has waded further into the leisure cruising industry with a deal to invest $1 billion in Miami-based Norwegian Cruise Line.

Apollo Management will invest $1 billion (€744 million) for a 50 percent stake in NCL Corporation, a Miami-based company with a fleet of 14 cruise ships operating under banners including Norwegian Cruise Line.

“To have an investment on this scale by one of the very top names in the private equity world is a huge vote of confidence in the new NCL we have created since Star Cruises became the owner in 2000,” NCL president and chief executive Colin Veitch said in a statement.

Steve Martinez, a partner at Apollo, said in a statement that the private equity firm believed NCL had significant growth potential.

Under the terms of the agreement, Apollo will own half the company’s stock and appoint a majority of the NCL board. The transaction is expected to close in the fourth quarter, and is subject to closing conditions, regulatory approval, Star Cruises shareholder approval, and Star and NCL lender consents.

Earlier this year, Apollo purchased luxury cruise line Oceania Cruises in a deal valued at $850 million. It is expected to remain separate from NCL, as the two companies focus on different segments of the cruise market, according to NCL.