Virgin Group, the Branson family-owned branded investment group, today announced the
formation of Virgin Cruises, its new cruise line business, as well as the appointment of a
CEO and its lead investment partner, Bain Capital. Financial terms of the transaction are
not being disclosed.
Proven industry leader Tom McAlpin will join Virgin Cruises as CEO and will head the
management team. Most recently, Tom has been President and CEO of The World, Residences at
Sea. Tom also served as President of Disney Cruise Line having joined as part of the
founding management team.
Virgin Cruises will be headquartered in the Miami/Fort Lauderdale area and plans to
design and construct two new world class cruise ships. At this time, the company has not
disclosed when it will start operating for competitive reasons. As part of one of the
world’s most recognized and respected brands, Virgin Cruises will offer guests an
outstanding experience and service aimed at broadening consumer targets for the cruise
market.
Virgin Group Founder Sir Richard Branson said, “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.”
Stephen Pagliuca, a Managing Director with Bain Capital, said, “From our earliest
conversations with the Virgin team, we recognized there is a unique opportunity here to
help build the next great cruise line serving travelers from around the world. We know
that thanks to the strategic vision laid out by our collective team – and now under the
guidance of Tom McAlpin – Virgin Cruises will help reshape consumers’ expectations of what
a cruise experience can be. All of us at Bain Capital are thrilled to partner with the
Virgin team on this compelling opportunity.”
Tom McAlpin said, “Cruise guests deserve something better and different to what is
being offered today, and Virgin Cruises is committed to creating breathtaking experiences
for them and a new generation of guests. Opportunities like this do not come often, so I
am very excited to lead this business and introduce the Virgin brand to the cruise
industry, as it has always put customers at the heart of what it does.”
Virgin Group has partnered with one of the world’s leading private investment firms,
Bain Capital, to work on this new venture. The partnership is committed to exploring the
creation of a global cruise business and setting new industry standards.
Ryan Cotton, a Principal with Bain Capital, said, “We are pleased to pursue this
exciting opportunity with Virgin, one of the world’s most respected and iconic brands.
With a small number of global players, an experience in need of refreshing, and consumers
ready for something new and exciting, the industry exhibits all the characteristics of one
that is ripe for a new entrant. Drawing on our long history of growing and building great
companies, we are confident that together with Virgin and the management team we will
build Virgin Cruises into a new favorite for leisure travelers.”
Evan Lovell, Partner at Virgin Management Limited said, “Virgin Cruises complements
our extensive travel and leisure experience, which includes our award winning global
airlines, passenger train service, and new hotel brand which will open its first property
in Chicago next month. We are thrilled that Bain Capital is joining us on this journey.”
Allen & Company LLC is advising Virgin Group on the transaction.
SOURCE: Virgin Group