Cedar Fair sale in works, for $700m - plus $1.6b in debt
Written by Mike K
The Wall Street Journal and Sandusky Register are reporting the potential sale of Cedar Fair to Apollo Management LP for $700 million.Tweet
The sale would also have Apollo Management take responsibility for the $1.6 billion in debt Cedar Fair current holds. The owner of Cedar Point, Kings Island, Knott's Berry Farm and other regional amusement parks, Cedar Fair has increasingly struggled to management its debt load over the past year. An official announcement is expected within the next couple of days.
So far, this is the only public article on the net is at sanduskyregister.com.
Update from Robert: Deal's done. Add the cash and the debt and you get about $2.3 billion.
Does that number sound familiar? It should. That's the amount that Blackstone paid InBev to obtain the Busch Entertainment Corp. theme parks, now rebranded as SeaWorld Parks & Entertainment. (InBev's got an option on an additional $400 million in SeaWorld revenue, so the final price could go as high as $2.7 billion.)
Given that the latest TEA/ERA report has the former BEC parks attracting 23 million in 2008 attendance, and Cedar Fair doing 22.7 million, it wouldn't be surprising that the two chains would fetch very similar prices. I wonder if Apollo didn't look at the BEC sale price, subtract the Cedar Fair debt and say, "hmm, $700 million sounds about right." (FWIW, I think that SeaWorld Parks should be worth more than Cedar Fair, given the value of the company's stronger brand names and better park locations.)
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