Above: Norwegian Breakaway

By the Caribbean Journal staff

One of the world’s biggest cruise lines is getting a whole lot bigger.

Norwegian Cruise Line Holdings announced Tuesday it had entered into an agreement to acquire Prestige Cruises International, the parent company of luxury cruise lines Oceania Cruises and Regent Seven Seas Cruise.

The total transaction consideration of the deal was worth $3.025 billion in cash and stock, including assumption of debt.

It also includes a contingent cash consideration of up to $50 million to Prestige shareholders that would be payable upon achievement of certain performance metrics in 2015, the companies said.

“The acquisition of Prestige represents an extraordinary opportunity for Norwegian Cruise Line to expand our market presence by adding two established, award-winning brands in the upscale cruise segment with loyal followings,” said Kevin Sheehan, Norwegian Cruise Line’s chief executive officer, in a statement. “Not only does this acquisition immediately enhance our financial performance, but it also deepens the bench of talent that we have been developing over the years.”

Prestige operates eight ships and around 6,500 berths under its two brands. Frank Del Rio will remain CEO of Prestige following the deal.

“We are excited to become part of the Norwegian family and start a new chapter for our company,” Del Rio said. “With Oceania and Regent, we have built iconic brands with distinctive product offerings and strong customer loyalty. The combination is very compelling and will allow us to further enhance our renowned guest experience.  We are looking forward to joining the Norwegian team and building upon the success that our three brands have already achieved.”

Norwegian will finance the deal with existing cash, new and existing debt facilities and the issuance of around 20.3 million shares of its common stock.