Carnival / HAL sell Windstar Cruises

[bishop84]

Windstar Cruises to be sold to Ambassadors International

22/2/2007

Carnival Corporation & plc has signed an agreement to sell its Windstar Cruises brand to Ambassadors International Inc. Under the terms of the agreement, Windstar will be sold for $100m, $40m of which is payable in cash and assumption of liabilities, and Carnival will provide mortgage financing for $60m. The loan will be payable over 10 years at 7% interest, collateralised by the three Windstar ships.

 

Commenting on the news Carnival chief Micky Arison said: ‘Windstar is an outstanding and unique cruise product and has garnered an extremely loyal following, however, Carnival Corp’s growth strategy is focused on expanding our core growth brands and opening new markets.’

The group made the decision to exit from the niche cruise business some time ago he noted and the sale of Windstar is in line with that strategy. ‘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,’ he explained.

Stein Kruse, president and ceo, Holland America Line, of which Windstar is a subsidiary, said the transaction has been structured to ensure a smooth transition for all parties. ‘Holland America Line will continue to operate the company through a transitional services agreement in the short term which includes vessel, reservations and other operational functions,’ Kruse added.

Windstar Cruises’ three ships include the 312-passenger Wind Surf and the 148-passenger Wind Star and Wind Spirit.

Carnival expects the transaction to close in the second quarter of 2007, subject to any applicable regulatory requirements, and to be neutral to earnings on an annualized basis for the 12-month period following closing. Ambassadors International, Inc. is a cruise, marine, and travel and event company. Through Ambassadors Cruise Group, the company operates Majestic America Line, river and coastal cruising company. The company is also a global leader in providing construction and consulting services to marina owners through its Ambassadors Marine Group subsidiary.

[shirlr]

This really sucks. Here's the info sent to travel agents:

 

Dear Travel Partner:

As you will see in the following news release, Holland America Line has entered into an agreement to sell Windstar Cruises to Ambassadors International.

Both companies are committed to making the transition seamless and positive for you. As our valued travel partners, your role does not change even though ownership will. Ambassadors International has a proven track record working with travel sellers through its Majestic America Line brand and will continue to work through travel sellers to market and sell the Windstar Cruises brand. The status of current bookings, group plans, sales promotions and marketing efforts has not changed.

Ambassadors is committed to operating the Windstar Cruises brand as it exists today, including its itineraries, casually elegant atmosphere, unique culinary experience, and the famed on-board service delivered by its renowned staff. Moreover, Ambassadors will endeavor to improve the value proposition for its guests.

We will proceed with business as usual both onboard the ships as well as in our land-based efforts. The sale is scheduled to close at the beginning of April. Holland America Line/Windstar Cruises will continue to operate the company in the near term through a transitional services agreement.

For Windstar Cruises reservations, call 1-800-258-7245. Thank you again for your continued support.

Sincerely,

Diane Moore David Giersdorf

Vice President, Marketing and Sales President

Windstar Cruises Ambassadors Cruise Group