New alliance between Royal Caribbean Group and iCON Infrastructure announced

According to the partnership's planned terms, the new alliance would help develop and operate cruise terminal facilities and infrastructure in home ports and significant ports of call in order to boost the company's operations.

The partnership, in which iCON VI has a 90% stake and RCG a 10% stake, will be run by a separate management team with assistance from RCG. Each parties consented to provide funds for growth in the future at the agreed upon rate.

Royal Caribbean Group President and CEO Jason Liberty referred to the partnership with iCON as a "unique opportunity" to propel the company into the next few decades of investment opportunities, increase financial stability, and continue to offer guests responsible, first-rate vacations in the world's top locations.

“Over the last few years, we have developed more destinations than any other cruise company and this new partnership will allow us to implement a capital-light investment framework to accelerate the development of strategic destinations around the world.

“We selected iCON because of our shared strategic priorities – delivering the best experiences in the world, responsibly – and our shared commitment to sustainability, being a committed partner in each of the destinations we visit and exploring the very best locations around the world”, Liberty commented.

iCON has vast expertise investing in ports and port-related infrastructure, with a primary emphasis on North America and Europe. As a starting point, the cooperation will include the PortMiami Terminal A in Florida as well as upcoming construction in Spain, Italy, and the Virgin Islands. As part of the Group's goal for developing tourist hotspots, the collaboration will also seek for new opportunities to build port infrastructure.

Royal Caribbean anticipates receiving net cash proceeds of about US$210 million at closure (during Q1 of 2023) in this transaction. Earnings, return on invested capital, and leverage are all expected to increase thanks to the cooperation, which will also help the Group advance its Trifecta initiative.

 

Source: cruisemapper.com