Sandusky, Ohio and Arlington, Texas —Sandusky-based Cedar Fair Entertainment Co. (NYSE: FUN) and Arlington-based Six Flags Entertainment Corp. (NYSE: SIX) have entered into a definitive merger agreement to combine in a merger of equals transaction. The all-stock deal values the combined company at approximately $8 billion, including debt.
Under the terms of the agreement, which has been unanimously approved by the boards of directors of both companies, Cedar Fair investors will receive one share of common stock for each unit they own, and Six Flags shareholders will receive .58 shares for each share they own. Following the close of the transaction, Cedar Fair unitholders will own approximately 51.2 percent and Six Flags shareholders will own about 48.8 percent of the combined company’s equity.
“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,” says Richard Zimmerman, president and CEO of Cedar Fair.
The combined company will operate a portfolio of 27 amusement parks, 15 water parks and nine resort properties across 17 states in the U.S., Canada and Mexico. The companies expect the merger to bring annual savings of about $200 million within two years of the deal closing.
Upon closing of the transaction, the combined company will operate under the name Six Flags and trade under the ticker symbol FUN on the New York Stock Exchange. The combined company will be headquartered in Charlotte, North Carolina. The merger is expected to close in the first half of 2024, following receipt of Six Flags shareholder approval, regulatory approvals and satisfaction of customary closing conditions. Approval by Cedar Fair unitholders is not required.
Cedar Fair owns and operates 13 properties, consisting of 11 amusement parks, four outdoor water parks and resort accommodations totaling more than 2,300 rooms and more than 600 luxury RV sites. The company’s parks are located in Ohio, California, North Carolina, South Carolina, Virginia, Pennsylvania, Minnesota, Missouri, Michigan, Texas and Toronto, Ontario. The company’s stock price opened at $38 per share Thursday, Nov. 2, down slightly from $39.96 per share one year ago.
Six Flags operates 27 parks across the U.S., Mexico and Canada. The company’s stock price opened at $22.50 per share Thursday, Nov. 2, down slightly from $21.16 per share one year ago.