Herschend is growing again.
The privately held owner of Silver Dollar City and Dollywood has signed an exclusive term sheet to acquire another regional theme park. After obtaining several parks in the former Palace Entertainment chain, Herschend today announced a deal for Idaho's Silverwood.
"Silverwood has been our family’s life’s work for more than three decades,” Silverwood Chief Operating Officer Paul Norton said. "When the time came to pass the torch, Herschend was the only choice. They share our values, our long-term approach, and our belief that parks like this are built by people with heart.”
“This is more than a business transaction—it’s the continuation of a legacy,” Herschend CEO Andrew Wexler said. “We are honored that the Norton family has trusted us to carry their vision forward and excited to welcome the Silverwood hosts and guests to Herschend."
Herschend said both parties have been a due diligence process on the way to completing the transaction.
I'm glad herchend is finding so much success. After hearing about what they did/are doing to Kentucky Kingdom, I'd be happy as an Idaho local. Although Silverwood and silver dollar city are going to get confusing quickly.
As Zarex noted, the timing of this is a bit surprising given the recent Palace acquisition, but Silverwood fits the profile of the expanding Herschend portfolio. It also gives the company a bit of geographic diversity given the have so many parks in the Ohio/Tennessee/Mississippi Valley region of the country.
I've never been to this park, but have heard great things about its cusomter service and overall guest experience, which is what Herschend does best.
As for future potential acquisitions, remember that it is easier - financially and logistically - for a privately held firm such as Herschend to buy privately-held, family-owned parks than it would be to buy parks from a publicly traded company such as Six Flags.
It's a lot more affordable to buy something when Wall Street investors are not demanding a cut.
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My initial thinking was that Herschend would pause to digest the Palace Portfolio before adding to the company roster. Given last week's announcement it seems very likely that one or more of the Six Flags cash cows are going to end up with Herschend, with The Great Escape the most likely candidate imo.