Branson’s Virgin Group building two ships for new cruise line
09 Dec 2014
The Virgin Group, the Branson family-owned investment group, has formed a new cruise line business, Virgin Cruises.
Tom McAlpin will join Virgin Cruises as chief executive and will head the management team. Most recently, McAlpin has been president and chief executive officer of The World, Residences at Sea. Tom also served as president of the Disney Cruise Line having joined as part of the founding management team.
Virgin Cruises, which will be headquartered in the Miami/Fort Lauderdale area, will design and construct two new world class cruise ships. At this time, the company has not disclosed when it will start operating.
Virgin Group has partnered with private investment firm Bain Capital to work on this new venture. Financial terms of the transaction are not being disclosed.
Conceived in 1970 by Sir Richard Branson, the Virgin Group includes mobile telephony, travel and transportation, financial services, leisure and entertainment, health and wellness, and space tourism.
"We plan to shake up the cruise industry and deliver a holiday that customers will absolutely love. They'll be sailing on the latest ships offering great quality, a real sense of fun, and many exciting activities all delivered with the famed Virgin service," Virgin Group founder Richard Branson said.
Before the decade is out, it will be doing cruise ships too - according to a Group press release announcing the formation of 'Virgin Cruises'.
The new business will be the first to enter the cruise market in almost 20 years. The last newbie, Disney Cruise Lines, opened for business in 1996.
''All of us at Bain Capital are thrilled to partner with the Virgin team on this compelling opportunity," Stephen Pagliuca, a Managing Director with Bain Capital, said.
Allen & Company LLC is advising Virgin Group on the transaction.
