Royal Caribbean nears $3 billion deal to take 50% equity stake in Sandals
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Royal Caribbean is nearing a $3 billion deal to take a 50% equity stake in Sandals, according to a person familiar with the matter.
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The person, who spoke on the condition of anonymity to discuss talks that had not been made public, said the deal values the Caribbean resort chain at $6 billion and that it was expected to boost for growth for both companies. The talks are ongoing and may not result in a deal, according to the person.
Royal Caribbean shares fell roughly 6% on the news, which was first reported by the Financial Times.
The company’s stock is down roughly 25% over the past year after it trimmed its forecasts for revenue growth on softer demand for European sailings.
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The cruise company has been intent on diversifying beyond cruises and becoming a leader overall in vacations. Royal Caribbean already operates several private destinations for its cruise passengers, but it has been working to build out those land offerings.
Sandals and its Beaches brand, meanwhile, have more than a dozen properties across the Caribbean, which would give Royal Caribbean a foothold in all-inclusive options.
Neither Royal Caribbean nor Sandals immediately responded to a request for comment.
