Cedar Fair And Six Flags Merge $8 Billion Deal In Amusement Park

In a groundbreaking development within the leisure industry, Cedar Fair (NYSE: FUN) and Six Flags Entertainment Corporation (NYSE: SIX) have unveiled their plans to merge, forging a powerful and expansive amusement park operator. This strategic merger, characterized as a “merger of equals,” has received unanimous approval from the Boards of Directors of both companies. In this article, we delve into the details of this significant merger and its implications for the leisure and entertainment sector.

A Formidable Partnership

The merger agreement, designed to unite two giants in the amusement park industry, is structured on a pro forma enterprise value of $8 billion. This valuation takes into account both the debt and equity values as of October 31, 2023. The merger is poised to create a new industry powerhouse, poised to shape the future of leisure and entertainment experiences for visitors across the nation.

Equitable Terms:

Under the terms of the agreement, Cedar Fair unitholders will receive one share in the newly formed company for each unit they currently own. Simultaneously, Six Flags shareholders will be allocated 0.5800 shares for each share they possess, adhering to the Six Flags Exchange Ratio. This approach ensures that both Cedar Fair and Six Flags stakeholders benefit from the merger’s advantages in a balanced manner.

Ownership Distribution:

Upon the successful conclusion of the merger, the ownership structure of the newly combined entity is anticipated to be quite balanced. Cedar Fair unitholders are expected to possess approximately 51.2% of the fully diluted share capital, while Six Flags shareholders will have a 48.8% stake in the new venture. This nearly equal distribution demonstrates the commitment to a fair and equal merger that respects the interests of both sets of shareholders.

Special Cash Dividend:

As part of the merger process, Six Flags will declare a special cash dividend of $1.00 for each outstanding share held by its shareholders. This cash dividend is further supplemented by an additional amount that is contingent upon the successful closure of the transaction. These measures aim to provide added value to Six Flags shareholders while ensuring a smooth and mutually beneficial merger process.

The Future of Leisure and Entertainment:

The merger of Cedar Fair and Six Flags heralds a new era in the leisure and entertainment industry. By combining their respective strengths and resources, the newly formed entity is poised to deliver even more thrilling, innovative, and memorable experiences for visitors. The expanded footprint of this amusement park operator will enable them to reach a broader audience and set new industry benchmarks.

Merger Of Cedar Fair And Six Flags

The merger of Cedar Fair and Six Flags represents a monumental step in the leisure and entertainment industry. With an equitable approach to ownership distribution and additional value through special cash dividends, both companies are positioning themselves for a promising future. This partnership will likely redefine the standards for amusement park experiences, ensuring that visitors can look forward to even more exciting and enjoyable outings. The merger’s approval by both Boards of Directors is a testament to the shared vision of Cedar Fair and Six Flags to create a brighter and more exhilarating future for leisure enthusiasts across the nation.

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