by Donald Wood
Last updated: 8:30 AM ET, Thu November 2, 2023
Update: November 3, 2023 at 8:16 a.m. ET
Officials from Cedar Fair and Six Flags Entertainment
Corporation announced they have entered into a definitive merger agreement to
combine in a merger of equals transaction. The combined company, with a pro
forma enterprise value of approximately $8 billion based on both companies’
debt and equity values as of October 31, 2023, will be a leading amusement park
operator in the highly competitive leisure space with an expanded and
diversified footprint, a more robust operating model and a strong revenue and
cash flow generation profile.
“Our merger with Six Flags will bring together two of North
America’s iconic amusement park companies to establish a highly diversified
footprint and a more robust operating model to enhance park offerings and
performance,” Cedar Fair President and CEO Richard Zimmerman said.
“Together, we will have an expanded and complementary
portfolio of attractive assets and intellectual property to deliver engaging
entertainment experiences for guests,” Zimmerman continued. “The combination
also creates an enhanced financial profile with strong cash flow generation to
accelerate investments in our parks to delight our guests, driving increased
levels of demand and in-park value and spending.”
“I have great respect for the Six Flags team and look
forward to joining forces as we embark on this next chapter together,” Zimmerman
concluded.
Original Text
United States amusement park operator Cedar Fair is
reportedly considering a potential merger with Six Flags Entertainment Corp.
According to Reuters.com,
confidential sources revealed that Cedar Fair and Six Flags are considering a
deal as concerns about an economic slowdown in the U.S. and consumers spending
less could force the brands to weather the storm together.
The theme park companies previously spoke about a merger in
2019, but no deal is imminent. Sources told Reuters that if an agreement is
reached on merger details, it could be announced as soon as Thursday when Cedar
Fair reports quarterly earnings.
As of Thursday morning, Cedar Fair has a market value of
$1.8 billion, while Six Flags is worth an estimated $1.7 billion. Despite their
immense value, the theme park brands struggled to find their footing after the
COVID-19 pandemic took a toll on revenue.
In total, Six Flags owns 27 parks across the U.S., Mexico
and Canada, and is the largest operator of water parks in North America. Cedar
Fair owns 11 amusement parks and four water parks in the U.S. and Canada.
In August, Six Flags announced one of the most substantial
planned investments in the company’s theme parks in more than a decade. The
investments span across more than a dozen parks, featuring an impressive lineup
of thrilling additions designed to captivate and exhilarate guests.
The expansion includes five brand-new rides in partnership
with Warner Bros. Discovery Global Themed Entertainment and DC, bringing iconic
DC Super Heroes and Super-Villains to life in exhilarating experiences.
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