Cedar Fair And Six Flags Announce Merge Creating One Amusement Park Company

Cedar Fair L.P. and Six Flags Entertainment Corp. have officially entered into a merger agreement to combine in a merger of equals transaction — valued at approximately $8 billion, including debt.

The merger was unanimously approved by the Boards of Directors for both companies.

This merger involves Cedar Fair unit holders receiving one share of common stock in the new combined company for each unit they own, while Six Flags shareholders will receive 0.5800 shares of common stock in the new entity for each share they hold.

Upon the merger’s completion, Cedar Fair unitholders will possess around 51.2% of the new entity, with Six Flags shareholders holding the remaining 48.8%. The anticipated closing date for this deal is in the first half of 2024.

The merged company will operate under the Six Flags name with Cedar Fair’s Richard Zimmerman will be CEO. Six Flags CEO Selim Bassoul will be the executive chairman. The company’s newly formed board will include six directors from Cedar Fair and six directors from Six Flags and listed as “FUN” on the New York Stock Exchange.

The business will be headquartered in Charlotte, North Carolina, and will keep significant finance and administrative operations in Sandusky, Ohio.

The newly formed company will boast a portfolio of 27 amusement parks, 15 water parks, and nine resort properties across 17 states in the U.S., Canada, and Mexico, with expectations of achieving $200 million in benefits from the deal, including $120 million in administrative and operational costs to be cut within two years.

In a statement, Cedar Fair CEO Richard Zimmerman said, “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.”

In the 12 months leading up to September 30, the two companies jointly generated $3.4 billion in revenue, serving 48 million guests. The merger is projected to enhance per-share earnings for both Cedar Fair unitholders and Six Flags shareholders within the first year after closing.

Additionally, the new company’s enhanced free cash flow is expected to provide greater flexibility for investments in park upgrades, new rides and attractions, improved food and beverage offerings, and other in-park and cross-park initiatives, including technology and guest services. The joint statement emphasized that resources will be strategically deployed to increase attendance, per capita spending, and profitability while enhancing the overall guest experience.

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.”

In separate reports, Six Flags posted net income of $11 million for the quarter ending October 1, a decrease from the previous year, while Cedar Fair reported net income of $215 million, with a year-over-year decline due to a one-time gain from land sales at California’s Great America. Six Flags stock rose 1.7% premarket, and Cedar Fair stock rose 1.3%.

The companies are two of the largest amusement park chains in the nation — joining forces to be worth approximately $3.5 billion combined.

No details on season passes, dining plans, etc were revealed at this time. But, don’t be surprised if you see Mr. Six and his playtime bus dancing in front of Cedar Fair parks!

The transaction still needs approval from Six Flags shareholders. Cedar Fair says the merger is expected to close in the first half of 2024. For more information, the press release can be viewed by clicking here.