Cedar Fair announces merger with Six Flags

SANDUSKY, Ohio and ARLINGTON, Texas – Cedar Fair and Six Flags officially announced Thursday that the companies have entered into a definitive merger agreement.

Following the $8 billion deal, the merged company will have a portfolio of 42 parks and nine resort properties across 17 states, along with Canada and Mexico. It will also have an estimated cost savings of $120 million within two years following close.

According to press releases from the companies, upon closing of the transaction, the merged company will operate under the Six Flags name and will be headquartered in Charlotte, North Carolina, but will maintain “significant” finance and administrative operations in Sandusky. Current Cedar Fair President and CEO Richard Zimmerman will serve as President and Chief Executive Officer of the merged company.

Also following the closing of the transaction, Cedar Fair unitholders will own approximately 51.2% and Six Flags shareholders will own approximately 48.8% of the combined company’s fully diluted share capital on a pro forma basis. The newly formed Board of Directors of the combined company will consist of 12 directors, six from the current Cedar Fair board and six from the current Six Flags board.

“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 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.

This article was written by Nate Hinners. Contact Nate at nhinners@huroninsider.com.