Genting Hong Kong (GHK), parent company of Crystal Cruises, has signed an agreement to acquire Lloyd Werft, a shipbuilder in Bremerhaven, Germany for a sum of €17.5m.
Under the terms of the deal, GHK will acquire 70% of the new shipbuilding business and a 50% ownership of the shipyard's land.
In March this year, GHK, a major shareholder in Norwegian Cruise Line Holdings (NCLH), acquired Crystal Cruises from Japan's NYK for $550m in cash.
GHK chairman and CEO Tan Sri Lim Kok Thay said: "Lloyd Werft has built and lengthened six of the ships owned by an affiliate of the company and has the expertise to build a series of world class cruise ships for the company, which will include the 'Exclusive Class' vessels for Crystal Cruises, the world's most awarded luxury cruise line.
"Ownership in Lloyd Werft will enable Genting Hong Kong to leverage on the shipyard's technical expertise and their well-established and long track record in the shipbuilding industry."
The transaction, which will be completed by Genting Hong Kong, is subject to the fulfilment of final purchase conditions.
In July, the company signed a letter of intent with Lloyd Werft to build polar ice class vessels called the Crystal's Exclusive Class.
Crystal Cruise president and CEO Edie Rodriguez said: "With such great anticipation for Crystal River Cruises and Crystal Exclusive Class ocean vessels, we are incredibly excited about Genting's groundbreaking investment in the Lloyd Werft shipyard that will contribute mightily to Crystal Cruises' expansion."
In addition, Lloyd Werft will build a collection of luxury river yachts in destinations across France, Germany, Switzerland, Holland, Belgium, Austria, Slovakia, Hungary, Croatia, Serbia, Romania and Bulgaria.
Image: Container ship Isolde. Photo: courtesy of Tvabutzku1234.