Two Major Amusement Park Companies Announce Merger

The combined company, which will operate under the name Six Flags, will have dozens of amusement parks, water parks, and resorts in the U.S., Canada, and Mexico.

By Allison Schonter

Cedar Fair and Six Flags are merging to create a new theme park powerhouse worth an estimated $8 billion. The two companies announced last week that the merger will make the new company a "leading amusement park operator in the highly competitive leisure space" that will feature 27 amusement parks, 15 water parks and nine resort properties in the U.S., Canada, and Mexico, making it one of the largest in the theme park businesses in North America.

"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," Richard Zimmerman, president and chief executive officer of Cedar Fair, said in a press release. "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."

In addition to Cedar Point, its flagship theme park in Sandusky, Ohio, Cedar Fair owns Knott's Berry Farm in California, Schlitterbahn water park in Texas and Canada's Wonderland in Ontario. The company reported an attendance of 12.4 million guests in its third quarter, a 1% increase from a year earlier. Meanwhile, Six Flags primarily operates under its own banner with about 20 parks in the US, two in Mexico and one in Canada. Six Flags announced a 16% rise in its third-quarter attendance, which totaled 9.3 million guests. The merger will give the new company entertainment partnerships and a portfolio of intellectual property including Looney Tunes, DC Comics and Peanuts.

"The combination of Six Flags and Cedar Fair will redefine our guests' amusement park experience as we combine the best of both companies," Selim Bassoul, president and chief executive officer of Six Flags, said in a press release. "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 companies said the new business, which will keep the Six Flags name, will be headquartered in Charlotte, North Carolina, though significant finance and administrative operations will stay in Sandusky, Ohio, where Cedar Fair is based. Under the terms of the merger agreement, Cedar Fair unitholders will own approximately 51.2% of the combined company, while Six Flags shareholders will own about 48.8%. Six Flags and Cedar Fair anticipate the merger will result in $120 million in cost savings within two years of closing the deal. The two companies also estimate the merger will generate $3.4 billion in revenue.

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