Royal Caribbean Cruises is buying a majority stake in luxury rival Silversea Cruises for $1 billion. The agreement was announced today by Royal Caribbean and majority owner of Silversea Manfredi Lefebvre D'Ovidio, to acquire a majority stake in the privately-owned Silversea Cruises. With this deal, worth $2 billion including debt, Royal Caribbean will take a 67 percent stake in Silversea Cruises. 

Royal Caribbean Cruises plans to finance the purchase through debt. In addition, Lefebvre will qualify for an estimated contingent consideration of 472,000 RCL shares, payable upon achievement of certain 2019-2020 performance metrics.

“Silversea is a crown jewel, and the acknowledged leader in luxury and expedition cruising, two key markets that are poised for growth,” said Richard Fain, chairman and CEO of Royal Caribbean Cruises. “Uniting our two companies presents an extraordinary opportunity to expand vacation options for guests and create revenue in strategic growth areas.”

"This partnership will bolster the growth of this exceptional brand founded by my father," said Lefebvre. "I have always been kindred spirits with Richard and we share a vision of offering excellence and leadership to our guests. This new partnership gives Silversea the opportunity to accelerate the growth of the most successful luxury and expedition cruising brand in the world."

The agreement is expected to complete later this year, with Silversea's current CEO Roberto Martinoli and the existing Silversea management team leading the company in the future.

Silversea Cruises is a privately owned luxury cruise line founded in 1994 with its headquarters in Monte Carlo. Silversea's co-founders, owners are the Lefebvre family of Rome, Italy. The company currently operates nine luxury cruise ships, each with capacity of 100 to 596 passengers including Silver Cloud, Silver Discoverer, Silver Explorer, Silver Muse, Silver Shadow, Silver Spirit, Silver Whisper, Silver Wind, and Silver Galapagos.