Cruise line OceanStar Corp. has acquired luxury cruise line Luxury Cruise Line Holdings, a $3 billion cruise company, for $3,835 million, in a deal that is expected to close this week.
The deal includes OceanStar’s cruise lines Luxury, Luxury Cruises and Luxury Line and their subsidiaries, according to a statement from OceanStar posted on the company’s website.
Luxury is the world’s largest luxury cruise operator and a major competitor to cruise lines owned by private equity firms, including Blackstone Group LP and Vantages Group LP.
The Luxury line is operated by the company.
The purchase price is $2.7 billion, according a person familiar with the transaction, who was not authorized to discuss the transaction publicly.
OceanStar’s board will be led by co-founder and CEO Michael Varela, according the company statement.
Varella was also the chairman of OceanStar and will join the board of the company, the statement said.
In addition to OceanStar, Luxuries and Luxuries Line will also join the OceanStar family.
Luxuries is a subsidiary of the world-leading luxury cruise company.
Luxursa is the luxury cruise lines luxury cruise brand.
Varela will become the first chief executive of a publicly traded company to serve on the board, joining Cruise Line’s Jeff DeMenth, who became the company CEO in November.
Verela will also serve on OceanStar board.
He will be joined by fellow co-founders of the Ocean Star, J. Michael Roberts, the chairman and CEO, and David Rieger, the CEO of Ocean Star’s subsidiaries, Cruise Line and Luxursat.
Roberts will remain the CEO.
The Luxury cruise line is owned by the Sotheby’s International Realty Group.
Its sister line, Luxuris, is also part of Oceanstar.
Oceanstar’s cruise line has operated more than a dozen luxury cruise ships, most of which feature an oceanfront resort theme and include resorts in Florida, Florida, Bermuda, Spain, France, Italy, Singapore and the United Kingdom.
It also operates luxury cruise vessels in North America.
In the most recent fiscal year, OceanStar said it reported net profit of $1.8 billion, or $1 per share, and earned $4.5 billion in net profit, or about 19 cents per share.
OceanStar had net income of $2 billion, including a $2 million profit from the sale of its fleet of luxury cruises.