EUREKA — Amusement park operators Six Flags and Cedar Fair plan to merge next year, cementing their status as industry giants. The move could lead to changes at Six Flags St. Louis, but one expert says the merger likely won’t close.
The companies said in a joint document that the combined company will boast 27 amusement parks, 15 water parks and nine resort properties across North America. statement.
Martin Lewison, a business management professor at Farmingdale State University in New York, said the planned merger is “big news for the industry.”
“There are very few overlapping markets,” said Lewison, who is nicknamed “Professor Roller Coaster” for his love of amusement parks and the courses he teaches. “The decision ultimately comes down to cash flow in that market. There is no reason for Six Flags St. Louis to close.”
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Essentially, World of Fun in Kansas City and Six Flags Great American in Chicago do not threaten St. Louis’ park in Eureka, he said.
The companies did not say what the merger would mean for Six Flags St. Louis.
Six Flags and Cedar Fair’s 10 locations in the Midwest received more than 12 million visitors in the third quarter, more than any other region. Six Flags’ top parks are Magic Mountain in California and Great Adventure in New Jersey. Cedar Fair owns Knott’s Berry Farm in California and its flagship park, Cedar Point in Ohio, among others.
“Six Flags and Cedar Fair share strong cultural ties, operating principles and a thrilling experience for consumers,” Selim Basour, president and CEO of Six Flags, said in a statement. We share a firm commitment to doing so.” “We look forward to combining our operating model and technology platform to accelerate our transformation efforts and unlock new potential for our parks.”
The $8 billion deal is expected to close in the first half of next year. Combined, the companies are expected to generate $3.4 billion in revenue. Six Flags is based in Texas.
The combined company also announced plans to combine the Looney Tunes, DC Comics and Peanuts intellectual property portfolios to develop new themed attractions and expand access to the parks through the company’s season passes.
However, Six Flags St. Louis is lower in the combined company’s park pecking order rather than as a destination, so any changes to St. Louis’ location would likely result in a new facility being built. It is likely to be brought about by changes being made to all facilities across the country. Rides and attractions, Lewison said.
“We are excited to bring our experience and strategy to bear on the broader portfolio,” Cedar Fair CEO Richard Zimmerman said on a call with investors last month. “Our financial profile gives us the flexibility to invest in new rides and attractions, a broader food and beverage assortment, additional in-park services and cross-park initiatives.”
Upon completion of the transaction, Mr. Zimmerman will become president and chief executive officer of the combined company, and Mr. Vasseur will become executive chairman of the combined company’s board of directors. The combined company will operate under the Six Flags name.
“As I think about combining these two iconic portfolios, what strikes me more and more is that this is like buying beachfront real estate and putting them together,” Zimmerman said. told investors. “These are irreplaceable assets with incredible value for maintaining cash flow and generating income over the long term.”
Despite the unknowns, the merger is good for both companies, Lewison said.
“There’s uncertainty behind it,” he says. “You never know which direction companies will go.”
Whoosh!The day Screamin’ Eagle debuted at Six Flags
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