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Apollo to invest in cruise company NCL20/08/2007. Source: AltAssets. 
 New York-based private equity firm Apollo Management has agreed to acquire a 50 per cent stake in Miami, Florida-headquartered cruise company NCL Corporation for $1bn.
NCL oversees the operations of Norwegian Cruise Line, NCL America and Orient Lines. The company recently took delivery of its newest ship, Norwegian Pearl, and is currently building Norwegian Gem, for delivery in October of 2007.
The new investment, in the form of common stock alongside NCL's existing sole shareholder, cruise operator Star Cruises, is designed to strengthen NCL's balance sheet and its ability to continue to expand what is becoming the youngest fleet in the industry, and to evolve further the company's Freestyle Cruising, according to a statement.
Apollo will name a majority of the NCL board with certain consent rights retained by Star. Star will retain all of its existing stock in NCL and will hold the other 50 per cent of NCL, following the transaction. Star bought NCL in 2000.
Steve Martinez, partner at Apollo, said, 'We are very excited to be forming this partnership with Star Cruises and the existing management team of NCL. Our investment will help NCL complete its transition into the youngest fleet in the cruise industry, with a truly original next generation product with its F3 concept ships. We believe the NCL brand has significant growth potential over many years to come.'
Apollo is already active in the cruise industry, having invested in the upper premium Oceania Cruises brand earlier this year.
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