Cedar Fair and Six Flags Announce Merger to Create Major Amusement Park Operator
In a groundbreaking move, Cedar Fair and Six Flags have announced their merger, which will result in the creation of a major amusement park operator in North America. This strategic decision comes as amusement parks continue to struggle with raising attendance in the wake of the COVID-19 pandemic.
Upon completion of the merger, the combined company will boast operations in 17 U.S. states and three countries, with an impressive total of 27 amusement parks, 15 water parks, and nine resort properties. Furthermore, the merger will bring together valuable entertainment partnerships and a diverse portfolio of intellectual property, including beloved brands such as Looney Tunes, DC Comics, and Peanuts.
Both Cedar Fair and Six Flags have seen varying degrees of success in their recent attendance figures. Cedar Fair reported a modest 1% increase in attendance in its third quarter, while Six Flags experienced a significant 16% rise. However, Six Flags has faced challenges with its attendance and pricing strategy, resulting in drops in visitation. The merger is seen as a strategic move to lower costs and enhance overall operational efficiency.
One of the key highlights of this merger is the expected cost savings. The combined company anticipates achieving $120 million in cost savings within two years of the merger’s completion. This is a significant consideration, particularly in an industry where financial stability and profitability are crucial.
It is important to note that Cedar Fair had previously rejected an offer from Six Flags in 2019, as well as a bid from SeaWorld last year. However, the current agreement stipulates that Cedar Fair unitholders will hold a majority ownership of 51.2% of the combined company, while Six Flags shareholders will own the remaining 48.8%.
While the merged entity will be headquartered in Charlotte, North Carolina, it will retain significant operations in Sandusky, Ohio. These combined operations are expected to solidify the new company as a dominant player in the amusement park industry.
The deal is still pending approval from Six Flags shareholders, but it is expected to close in the first half of next year. Both Cedar Fair and Six Flags are confident in the potential of this transformative merger and its ability to create a powerhouse in the North American amusement park market.
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