- Royal Caribbean is nearing a $3 billion deal to take a 50% equity stake in Sandals, according to a person familiar with the matter.
- The transaction values Sandals at $6 billion, but talks are ongoing and a deal is not guaranteed.
- Royal Caribbean shares fell roughly 6% on the news, which was first reported by the Financial Times.
- Royal Caribbean stock is down roughly 25% over the past year after the company trimmed forecasts for revenue growth on softer demand for European sailings.
- A deal would deepen Royal Caribbean's push into land-based vacations and give it a foothold in all-inclusive options.
- Sandals and its Beaches brand have more than a dozen properties across the Caribbean.
Quotes
“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.”
“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.”
“Neither Royal Caribbean nor Sandals immediately responded to a request for comment.”