Cedar Fair and Six Flags Entertainment Corporation are merging, the companies announced Thursday.
The $8 billion deal will create a “leading amusement park operator in the highly competitive leisure space with an expanded and diversified footprint, a more robust operating model and a strong revenue and cash flow generation profile,” the companies said.
Terms of the merger unanimously approved by the boards of directors for both companies include Cedar Fair stockholders getting one share in the new combined company for each unit owned, while Six Flags shareholders will receive 0.5800 shares of common stock in the new combined company for each share owned.
Once the transaction closes, Cedar Fair unit holders will own approximately 51.2% and Six Flags shareholders will own approximately 48.8%.
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“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,” Richard Zimmerman, president and CEO of Cedar Fair, said.
Cedar Fair, headquartered in Sandusky, Ohio, operates 11 amusement parks in Ohio, California, North Carolina, South Carolina, Virginia, Pennsylvania, Minnesota, Missouri, Michigan, Texas and Ontario.
“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,” Selim Bassoul, president and CEO of Six Flags, added in the release.
Six Flags Entertainment Corporation says it is the “world’s largest regional theme park company” with 27 parks across the United States, Mexico and Canada.
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The companies say over the last year they “collectively entertained 48 million guests.”
Once the merger transaction closes, the newly formed board of directors will consist of 12 directors, six from Cedar Fair’s previous board and six from Six Flag’s previous board.
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The company will operate under the name Six Flags and trade under the ticker symbol FUN on the New York Stock Exchange. Although the combined company will be headquartered in Charlotte, North Carolina, “significant finance and administrative operations” will be in Sandusky, Ohio.
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.” The press release states that approval by Cedar Fair unit holders is not required.