March 03, 2015
Crystal Cruises To Be Acquired By Genting Hong Kong
CRYSTAL CRUISES TO BE ACQUIRED BY GENTING HONG KONG
Leading Luxury Cruise Line to Grow Under New Ownership with an
Innovative New Build
That Will Exceed All Current & On-Order Luxury Offerings in the
Global Cruise Industry
Today, Nippon Yusen Kabushiki Kaisha (NYK), Crystal Cruises’ parent company since its inception in 1988, announced it has entered into an agreement with Genting Hong Kong (GHK), under which Crystal Cruises will be acquired by GHK. The acquisition is expected to close in the second quarter of 2015.
With the support of GHK’s financial strength and expertise in ship design, Crystal Cruises’ fleet size will expand with a new ship, elevating the standard of luxury cruising and luxury cruise ships. Crystal’s fleet currently features Crystal Symphony and Crystal Serenity.
“After 25 successful years with NYK, we are excited to have Genting Hong Kong as the new owner of Crystal Cruises,” said Edie Rodriguez, President and COO of Crystal Cruises. “The proposed expansion of our fleet will present our loyal Crystal Society members and new luxury cruise guests with more itinerary options, accommodation choices and exceptional vacation experiences, as we continue to position Crystal as the innovative leader in global luxury cruising. Additionally, Crystal’s veteran leadership, management and crew will continue to focus on our award-winning guest service and our strong partnership with the travel agent community - which now has a greater opportunity to grow their business with a larger menu of Crystal product offerings.”
Established in 1993, GHK is part of the Genting Group, a global hospitality and leisure company with business in over 20 countries, including the United States in New York, Florida and Nevada. GHK wholly owns Star Cruises, Asia’s leading cruise line, and is a major shareholder of Norwegian Cruise Line. It is a public company primarily listed on the Hong Kong Stock Exchange and secondarily on the Singapore Stock Exchange.
“Crystal Cruises offers the epitome of luxury cruising and the service standard which all other cruise lines aspire to,” said Tan Sri Lim Kok Thay, Chairman, CEO and Acting President of GHK. “The current management team and crew will continue to lead Crystal Cruises. Genting will provide financial resources and proven expertise in innovative ship design to build a new ship that will set the highest standard in luxury cruise ships. This new ship, together with Crystal’s legendary six-star service, will reinforce Crystal Cruises’ reputation as the world’s leading luxury cruise line for decades to come.”
Under the terms of the agreement, GHK will acquire Crystal Cruises for US$550 million in cash which is subject to certain adjustment items to be ascertained after the closing. Crystal Cruises’ two ships have approximately 1,992 lower berths and the consideration has been determined on a cash-free and debt-free basis, translating into an enterprise value to lower berth ratio of approximately US$276,000.
Crystal’s passion for taking care of guests in an inviting environment of extraordinary space, quality and choices has earned the company more “World’s Best” awards than any other cruise line, resort, or hotel in history. Crystal Cruises has won “World’s Best Cruise Ship” in Condé Nast Traveler’s Reader Choice Awards for 21 years; voted “World’s Best Large Ship Cruise Line” by Travel + Leisure readers for 19-consecutive years; the “Best Luxury Cruise Line” by Virtuoso, Specialists in the Art of Travel; and both Crystal Symphony and Crystal Serenity were rated as two of the “Top 5 mid-size ships” by the 2015 Berlitz Cruising & Cruise Ships.
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About GHK and the Genting Group
Genting
Hong Kong Limited is primarily listed on the Hong Kong Stock
Exchange, secondary listed on the Singapore Stock Exchange and is
part of the Genting Group (www.genting.com),
a global company founded in 1965 operating destination resorts in
Malaysia, the Philippines, Singapore, South Korea, the United
Kingdom and the Americas. The Genting Group has substantial
investment in the cruise industry through GHK and its wholly owned
Star Cruises and now Crystal Cruises brands, and is a major
shareholder of Norwegian Cruise Line. Additionally, the Genting
Group has interests in agriculture, real estate, oil exploration
and bio-medical industries. Genting has over 40 years of experience
in the hospitality and leisure industry and collectively employs
approximately 60,000 people. Genting properties offer an
unparalleled resort experience to over 50 million visitors a
year.
About Nippon Yusen Kabushiki
Kaisha
Nippon
Yusen Kabushiki Kaisha (NYK) is one of the largest and most
successful shipping companies in the world. Headquartered in Tokyo,
the firm operates nearly 900 ships and has offices around the
globe.
Frequently Asked Questions/March 3, 2015
1. Who is the new owner/where are they located?
Do they own other cruise lines?
Today, Nippon Yusen Kabushiki Kaisha (NYK), announced it has
entered into an agreement with Genting Hong Kong (GHK) on the sale
of Crystal Cruises, Inc. (CCI) with an anticipated close date in
the second quarter of 2015.
Established in 1993, GHK is part of the Genting Group, a global
hospitality and leisure company with business in over 20 countries,
including the United States in New York, Florida and Nevada. GHK
wholly owns Star Cruises, Asia’s leading cruise line, and is a
major shareholder of Norwegian Cruise Line. It is a public company
primarily listed on the Hong Kong Stock Exchange and secondarily on
the Singapore Stock Exchange.
2. Will there be a new leadership team at Crystal? GHK recognizes
Crystal’s reputation as the world’s best luxury cruise line and has
pledged to NYK that Crystal’s executive leadership and its
employees - including its sales force and onboard crew – and Los
Angeles corporate headquarters will remain in
place.
3. Will there be a name change to Crystal Cruises? Crystal Cruises
will remain as the name. GHK values the Crystal Cruises brand and
only seeks to strengthen it. 4.
Will Crystal get a new ship?
Yes, with its financial strength and expertise in ship design, GHK
will expand Crystal Cruises fleet size with an innovative ship
design and set the highest standard in luxury cruise ships that
together with Crystal’s legendary six-star service will reinforce
Crystal Cruises’ reputation as the world’s leading luxury cruise
line for decades to come. This new ship is expected to be delivered
in 2018.
Genting’s investment in expanding our fleet will present our loyal
Crystal Society members and new luxury cruise guests with more
itinerary options, accommodation choices and exceptional vacation
experiences.
Additionally, the new ship build will provide our travel agent
partners with greater opportunity to grow their business with a
larger menu of Crystal product offerings.
5. When will Crystal get a new ship? After the
acquisition is finalized, Crystal, in partnership with GHK, will
begin work on designing a new ship that will exceed all offerings
in the luxury cruise industry. This new ship will be delivered in
2018. We will provide additional updates as they become
available.
11755 Wilshire Boulevard, Suite 900 Los Angeles, California 90025
Tel
310.785.9300
www.crystalcruises.com
6. Will Crystal keep their two
ships? Yes, both Crystal
Symphony and Crystal Serenity will remain in the Crystal fleet, and
we will continue to invest in redesigns, as well as continuing to
exceed safety and security features on both
vessels.
7. Will they keep the officers, staff and crew on the
ships? Yes, shipboard personnel
will remain. In fact, the purchase by GHK, with the addition of a
new ship, will provide our employees even more career opportunities
to expand and grow professionally within the
company.
8. Will the Crystal Society loyalty program benefits
change? The Crystal Society
program will remain. We will continue to improve upon the program
over time.
9. Will the Crystal Cruises product
change? Crystal will continue
to improve as it has for the last 25 years, enhancing upon our four
pillars: Service, Space, Quality and Choices to guide our future
offerings and maintain our standing as the World’s Best Cruise Line
well into the future. GHK is committed to
ensuring loyal customers continue to have an exceptional Crystal
experience.
10. Will there be cuts in the
product? No, in fact, Genting
will provide financial resources and proven expertise in innovative
ship design to build a new ship and set the highest standard in
luxury cruise ships that together with Crystal’s legendary six-star
service will reinforce Crystal Cruises’ reputation as the world’s
leading luxury cruise line for decades to
come.
11. Will Crystal Cruises Los Angeles headquarters and current
staffing remain? Yes, our Los Angeles
headquarters, staffing - including sales and onboard crew - will
remain in place. There are no plans to change the structure of the
Crystal shipboard staff, in fact, there will be more potential for
career growth and expansion for personnel on board and at the
corporate level as we add to our
fleet.
12. When will you have a new
ship? Building a ship that sets
the standard in luxury for the entire industry does not happen
overnight. We will begin work soon after the acquisition is
finalized. The new ship will be delivered in 2018. Further
announcements on the new ship build will be made as they are
available.
13. Will the ships’ itineraries that are currently available
change? The planned
itineraries, as announced and published through 2017, will not
change as a result of the ownership
transition.
14. When will the sale be concluded? The acquisition is expected to
close in the second quarter of 2015. Updates will be
provided