Carnival in Deal to Expand in Spain

Thursday, February 08, 2007
Carnival Corporation & plc and Orizonia Corporación, Spain’s largest travel company which operates its own cruise fleet under its Iberojet division, announced the signing of a letter of intent to form a joint venture to operate and expand the existing Iberojet Cruceros brand in Spain.

Iberojet Cruceros operates two modern cruise ships, the 834-passenger Grand Voyager, built in 2000, and the 1,196-passenger Grand Mistral, constructed in 1999, which represent the newest ships in the contemporary Spanish cruise market. The new joint venture would eventually be comprised of a multi-ship fleet serving the rapidly expanding Spanish vacation sector.

Under the proposed agreement, the two existing vessels would be transferred to the joint venture company. The intention is to grow that fleet over the next several years through the acquisition of existing tonnage from Carnival Corporation & plc’s current fleet.

“Iberojet operates a very successful cruise brand, along with a wide range of quality and affordable vacation products, which have garnered extremely strong brand awareness with Spanish consumers. With their extensive experience marketing in Spain, combined with a keen understanding of Spanish vacation trends, Iberojet provides a solid partnership for expanding in one of the fastest-growing segments of the European vacation industry,” said Micky Arison, Carnival Corporation & plc’s chairman and CEO.

Commented Pedro de Esteban, Orizonia´s chairman and managing director of The Carlyle Group, Orizonia´s principal shareholder, “We are very proud in partnering with Carnival, the world’s leader in the cruise vacation business. With Carnival’s support and expertise, we intend to continue expanding our operations, adding high quality vessels and providing specialized top services to our Spanish customers.”

Added Gabriel M. Subias, Orizonia Corporación’s CEO, “It is a great opportunity for us and Iberojet Cruceros to join forces and develop a strategic alliance with Carnival, a world leader in cruising. Through the years, we have always enjoyed close professional and personal relationships with Carnival. Our collaboration in the development of a successful joint venture will position us as the preeminent Spanish cruise operator.”

Under the proposed transaction, the Iberojet cruise business being contributed to the joint venture company will be valued at €320 million, with €180 million in debt, representing a net capital value of €140 million. Carnival will own 75 percent of the joint venture with Iberojet owning 25 percent.

Iberojet Cruceros would utilize the current Iberojet cruise management team with its president Alfredo Serrano reporting to the joint venture’s board of directors. It is expected that Pier Luigi Foschi, chairman and CEO of Carnival’s Costa Cruises unit, will serve as chairman of the board of the joint venture. Costa already has a strong presence in the Spanish sector. “With the combined strengths of the Costa and Iberojet organizations, the new joint venture should generate even greater brand recognition in our efforts to grow the interest in cruising in a market that we believe is primed and ready for expansion,” Foschi said. Carnival expects the transaction to be neutral to earnings on an annualized basis for the 12-month period following the transaction closing. The transaction is expected to close in the second quarter of 2007, pending approval of both companies’ boards of directors, all necessary regulatory approvals, customary due diligence and execution of definitive agreements.

Maritime Reporter September 2013 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Contracts

New Superyacht ROCKIT.IT Launched by Feadship

Feadship says it has launched the outstanding 60.35-metre motoryacht ROCK.IT. Created for an experienced owner who has chartered Feadships and appreciated the essence of the brand,

FTA Approves WSF Ferry Terminal Plans

In the latest Washington State Ferries Weekly Update, Capt. George A. Capacci, Interim Assistant Secretary WSDOT/Ferries Division briefs as follows: "FTA approves

NZ Interislander Ferry to Dry-dock in Devonport

NewZealand's KiwiRail says that the Interislander ferry Arahura has left Wellington for her scheduled bi-annual dry-docking in Devonport, having last visited Auckland in July 2012.

Cruise Ship Trends

Keel Laid for Holland America Line’s New Ship

Holland America Line celebrated the keel laying of its new 2,650-guest Pinnacle Class ship on August 22 at Fincantieri’s Marghera shipyard in Italy. A 680-ton block

Kiel Port Growth Continues

Cargo and passenger handling rise by 3%. Handling in the Port of Kiel continued to grow in the first half of the year. A total of 3.24 million tons of cargo

Warming Aids Arctic Economies, but Short of 'Cold Rush'

Climate change is aiding shipping, fisheries and tourism in the Arctic but the economic gains fall short of a "cold rush" for an icy region where temperatures are

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Navigation Offshore Oil Pipelines Port Authority Salvage Ship Electronics Sonar
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2515 sec (4 req/sec)