UPDATED, 1:30 PM: The long-expected merger of theme park operators Cedar Fair and Six Flags finally has closed, creating what Six Flags called today “the largest and most diverse amusement park operator in North America.” The newly combined behemoth will operate under the Six Flags name and, appropriately, trade under the ticker symbol FUN.
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The new Six Flags boasts an impressive portfolio of 42 parks stretching across the United States, Canada and Mexico, including Magic Mountain and Knott’s Berry Farm in Southern California.
As a result of the deal combining two companies that operate in different parts of North America, $120 million in cost savings is expected within two years of the closing of the all-stock deal.
Per Six Flags announcement: “Our enhanced financial flexibility will enable us to invest in new rides, attractions, food and beverage options, and state-of-the-art consumer technologies. These investments are designed to grow attendance, increase per capita spending and enhance profitability, ensuring that each visit to our parks is more exciting and memorable than the last.”
Richard Zimmerman, former president and CEO of Cedar Fair, will serve as president and CEO of the combined company, while Selim Bassoul, former president and CEO of Six Flags, will be executive chairman of the Board of Directors.
PREVIOUSLY, November 2 : In what is described as a “merger of equals,” theme park operators Cedar Fair and Six Flags, are joining forces in an $8 billion deal, the companies announced Thursday.
The combined company, which will be operated under the Six Flags name, will be headquartered in North Carolina and will feature a combined 27 amusement parks, 15 water parks and nine resorts across 17 states, Canada and Mexico.
“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, President and Chief Executive Officer of Cedar Fair. “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.”
“The combination of Six Flags and Cedar Fair will redefine our guests’ amusement park experience as we combine the best of both companies,” added Selim Bassoul, President and Chief Executive Officer of Six Flags. “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.”
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Zimmerman will be president and CEO of the combined company. Selim Bassoul, president and CEO of Six Flags, will become executive chairman.
Six Flags and Cedar Fair, which operate in different parts of North America, anticipate $120 million in cost savings within two years of closing the all-stock deal.
Under the agreement, Cedar Fair unitholders will receive one share of common stock in the combined company for each unit owned, while Six Flags shareholders will receive 0.5800 shares of stock in the combined company for each share owned.
Cedar Fair unitholders will own approximately 51.2% of the combined company, while Six Flags shareholders will own about 48.8%.
The merger is expected to close in the first half of 2024.
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