Apollo Management to Purchase Regent

Industry reports indicate that Apollo Management, the investment group, reportedly is buying Regent Seven Seas Cruises from Carlson Companies for $1 billion. CFO.com yesterday reported that Apollo won an auction for the luxury cruise line. Apollo is a private equity fund that earlier this year invested $1 billion in NCL Corp. in return for 50 percent ownership and $850 million for majority interest in Oceania Cruises.

In related news, Apollo Management may also be in the process of purchasing Grand Circle Travel cruise and tour company.

Does this mean another mega cruise corporation similar to Carnival Corp? I don't believe so. In my estimation, this is a capital investment company which sees the cruise industry as a high growth sector which is a good investment for them. Apollo isn't changing the management of any of these companies, they're simply providing capital for growth. As you can see, they're choosing very specialized brands (even though NCL is a mainstream brand, it's very different from its competition) and smaller brands such as Regent and Oceania. This should be a positive development for all these brands and the industry as a whole as we continue to grow and bring out new products.