Cedar County Fair Entertainment Company, the owner of Cedar Point and various other amusement parks in North America, has made a notable declaration of a merger with Six Flags Entertainment Corporation, incorporating them into their company.
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Cedar County Fair & Six Flags: New Financial Powerhouses
After reports of a possible integration with Reuters and The Wall Street Journal, Cedar Fair and Six Flags have officially become partners as of Wednesday afternoon. Cedar County Fair is valued at 1.8 billion dollars on the other hand it was reported that Six Flags stands at 1.7 billion dollars.
By October 31st, the combined value of Cedar Fair and Six Flags, based on their debts and equity values, will reach nearly 8 billion dollars.
The terms placed for the merger has been approved by the boards of directors of both companies.
Distribution of Shares
The deal grants Six Flags shareholders 0.58 shares of common stock in the new company, while Cedar County Fair unitholders will receive one share per unit.
The Vision for the Future
Richard Zimmerman, President and Chief Executive Officer of Cedar County Fair, stated, “Our merger with Six Flags brings together two of North America’s prominent theme park companies to create a stronger operating model for delivering an even more diverse footprint and range of offerings and experiences to our guests. Together, our collective assets and intellectual property portfolio will provide enhanced, immersive leisure experiences for our guests at our parks.”
He further stated, “This combination will fortify our balance sheet and enhance our financial profile to drive enhanced cash flow generation for investment in our parks, enabling us to elevate our guests’ experiences through expanded offerings and operational enhancements, while driving an improved financial profile that supports higher value and spending.”
Zimmerman stated that, he has great respect for the Six Flags team, and that he has great expectations and looks forward to joining forces as they both embark on this new chapter,
Moreover, the joint company is expected to maintain the Six Flags brand as a corporate name and operate under FUN, Cedar County Fair’s ticker.
A Powerful Amusement Park Portfolio
Cedar Fair owns 11 amusement parks and four outdoor water parks across ten U.S. states and Ontario, Canada. Meanwhile, Six Flags is known as the largest water theme park in North America. Owning 27 parks spanning across the United States, Mexico, and Canada.
The Chairman and Chief Executive Officer of Six Flags known as Selim Bassoul stated that, “The merger of Six Flags and Cedar Fair will redefine the experiences at our guest theme parks because both companies share a resolute commitment to create captivating, compelling experiences and value for consumers.”
He Further emphasized the fact that, “Together, by combining our operational models and technology platforms, we anticipate accelerating our transformation initiatives and unlocking new capabilities for our parks and that We are excited for this unification of our teams and hope that this will maximize the benefits to our guests, shareholders, employees, and other stakeholders from the development of our joint platform.”
Historical Perspective and Prior Offers
In 2019, Cedar Fair rejected a $4 billion acquisition offer from Six Flags, citing that “the bid was too low,” according to anonymous sources.
The history of Six Flags in Ohio’s Aurora includes purchasing and rebranding Geauga Lake after acquiring it from error in 2004. Cedar Fair later acquired the property from Six Flags and reverted it to its original name, Geauga Lake, in 2007.
Last year, Cedar Fair rebuffed an acquisition offer from SeaWorld, which was valued at 3.4 billion dollars. Should this deal go through, Cedar Fair Entertainment Company would surpass Six Flags Entertainment Corporation to become the fifth-largest theme park company in the world.