Amusement parks have seen an uptick in revenue but have struggled to raise attendance since the pandemic, even as other entertainment sectors have bounced back. A tie-up between two huge players is expected to at least lower costs.
Cedar Fair reported an attendance of 12.4 million guests in its third quarter, a 1% increase from a year earlier.Six Flags and Cedar Fair, which have little geographical overlap, anticipate $120 million in cost savings within two years of closing the deal. Under the agreement announced Thursday, 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% of the combined company, while Six Flags shareholders will own about 49%.
“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,” Cedar Fair CEO Richard Zimmerman said in a prepared statement. The company will be headquartered in Charlotte, North Carolina, and will keep significant finance and administrative operations in Sandusky, Ohio, where Cedar Fair is based. Six Flags is now based in Arlington, Texas.Mariah Carey thaws out, breaks ice just in time for Christmas season in viral video: reportsIf you purchase a product or register for an account through a link on our site, we may receive compensation.