Apollo Management acquires a majority stake in Oceania Cruises

Private equity firm Apollo Management has acquired a significant majority stake in Oceania Cruises. The overall transaction is valued at $850M, including $375M in debt related to Oceania’s November 2006 purchase of its three previously leased vessels. An Oceania spokesman confirmed to Fairplay that the financial clout of the new owner “positions the company very well for growth”. Following the transaction, Oceania will remain a wholly independent brand, supported by Apollo’s $12Bn private equity fund, with minority interests still held by the line’s founding investors, including Frank Del Rio, who remains chairman and chief executive. Lehman Brothers and UBS Securities served as Oceania’s financial advisors for the Apollo transaction. Founded in 1990, Apollo has previously invested in companies including Wyndham, Saks, RockResorts, Berlitz and Sotheby’s. In November, when Oceania closed on the acquisition of its 684-passenger Regatta, Insignia and Nautica, Del Rio said the company would next “focus on fleet expansion”. When announcing that earlier transaction, Oceania reported that between 2003 and 2006, its available berths had quadrupled while yield per guest had simultaneously increased 41%.