Definitive Agreement: Cedar Fair and Six Flags to Merge
(eap) The two listed US amusement park operators Cedar Fair (NYSE: FUN) and Six Flags (NYSE: SIX) have entered into a definitive merger agreement, as was officially announced today. With the reference date of 31 October 2023, the companies, which are of comparable size in terms of their economic key figures, achieve a combined enterprise value of around eight billion US dollars (approx. 7.5 billion euros). The combined portfolio of leisure parks and facilities will count a total of 27 amusement parks, 15 water parks and nine resort facilities in the USA, Canada and Mexico.
The consolidation will be conducted as a merger of equals. Accordingly, Cedar Fair unitholders will together own approximately 51.2 per cent of the combined company’s diluted shared capital after the merger, while Six Flags shareholders will own 48.8 per cent. The future President and CEO of the combined companies will be Richard Zimmerman (currently President & CEO of Cedar Fair). Selim Bassoul, President and CEO of Six Flags, will assume the position of Executive Chairman of the combined company’s Board of Directors.
“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,” said Richard Zimmerman. “Together, we will have an expanded and complementary portfolio of attractive assets and intellectual property to deliver engaging entertainment experiences for guests. 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.”
Selim Bassoul added, “The combination of Six Flags and Cedar Fair will redefine our guests’ amusement park experience as we combine the best of both companies. Six Flags and Cedar Fair share a strong cultural alignment, operating philosophy, and steadfast commitment to providing consumers with thrilling experiences. By combining our operational models and technology platforms, we expect to accelerate our transformation activities and unlock new potential for our parks. We are excited to unite the Cedar Fair and Six Flags teams to capitalize on the tremendous growth opportunities and operational efficiencies of our combined platform for the benefit of our guests, shareholders, employees, and other stakeholders.”
The merger of Cedar Fair and Six Flags is expected to close in the first half of 2024. ■
