Investors Acquire Hurtigruten to Recapitalize Cruise and Coastal Businesses

Hurtigruten Group which is one of the longest-surviving Norwegian shipping companies reports it has reached an agreement with existing shareholders to take ownership of its businesses and recapitalize the shipping and expedition cruise operations. The company which was founded in 1893 has transported passengers, cargo, vehicles, and tourists on the Norwegian coast and more recently expanded into expedition cruising to destinations including Antarctica. 

The company has struggled to rebound from the pandemic, a series of missteps, and increased competition. Norway split the coastal business and awarded a competing contract to Havila which launched four newbuild cruise ships for the service. According to reports from Bloomberg, the traditional coastal business saw a decline in revenues while Hurtigruten’s expedition business has been operating at a loss. Bloomberg estimates investors provided nearly $400 million in shareholder debt to the group since 2021.

The group had been pursuing a business plan since 2021 that called for the eventual separation of the coastal and expedition businesses into two standalone companies. It reports the current transaction, expected to be completed in January 2025, will complete the process of separating the two businesses.

TDR Capital, a London-based private equity firm has been an investor in the business since December 2014. Among the existing shareholders, Arini Capital Management, AlbaCore Capital, and Barings will lead the new ownership of Hurtigruten. Arini and Cyrus Capital Partners will be the lead shareholders of the expedition cruise company. 

Under the terms of the new agreement, Hurtigruten will receive over €500 million ($528 million) in new capital to support the businesses and growth in the operations. The monies will be split approximately with €110 ($116 million) in new long-term funding to Hurtigruten for the coastal operations. The expedition company, now known as HX, will receive approximately €140 million (US$148 million).

The transaction will also significantly reduce outstanding debt by over €1 billion. Hurtigruten reports it will result in a remaining debt outstanding of approximately €400 million. Maturities will also be extended to at least 2030.

“The change in ownership has no practical implications for Hurtigruten’s customer offering, business partners, or daily operations,” the company emphasized in announcing the agreements. Hurtigruten, they noted will continue as a standalone company headquartered in Oslo and will own and operate 10 ships under the Norwegian flag. HX, headquartered in London, operates five expedition cruise ships to over 250 destinations.

Hurtigruten said that it is seeing strong demand for its product. They reported that 2025 bookings are 24 percent higher year-to-date compared to last year for 2024. The company said it is poised for further acceleration of its growth in 2026.

The company has invested in upgrades to its fleet including the operation of four hybrid vessels in the coastal service and the elimination of heavy fuel oil. The group has also been working on an innovative design incorporating sails and solar to become possibly the world’s first net-zero cruise ship.