Today, Royal Caribbean Cruises announced that it is acquiring a 66.7% stake in Silversea Cruises for $1,000,000,000 (billion) and assuming around $500,000,000 (million) in debt.

As a privately held cruise brand, Silversea operates nine ships with two newbuilds, Silver Moon and Silver Dawn, which are under construction for delivery in 2020 and 2021, with an option for a sister ship.

RCL states that it plans to finance the purchase through debt. Silversea’s executive chairman, Manfredi Lefebvre d’Ovidio, will qualify for an estimated contingent payment of of 472,000 RCL shares, based on reaching certain 2019-2020 performance marks, which are currently worth a little over $50,000,000 based on the current price of RCL shares.

Seatrade Cruise explains that Silversea was the “brainchild of Antonio Lefebvre d’Ovidio, a noted Italian jurist and law professor who wanted to create a new class of spacious ships with highly personalized service. In 1988, he purchased the majority of Sitmar Cruises, merging it with P&O’s Princess Cruises a year later. In 1994, he launched Silversea Cruises with two purpose-built ships. His son Manfredi, who had been involved in the family’s businesses from an early age, managed ship operations. He took control of the company and became chairman in 2001.”

Silversea Cruises has tarnished its reputation in the last few years, having faced the embarrassment of crew members being ordered to hide carts of food and galley equipment in crew member quarters on the Silver Shadow in 2013. CNN aired a special report of the CDC flunking the Silver Shadow when inspectors caught Silversea in the act.  The Silver Shadow flunked another CDC inspection in 2015.

The Silver Wind also flunked a USPH sanitation inspection last month.

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Photo Credit; Royal Caribbean/Silversea via Travel Weekly,