Cedar Fair (NYSE: FUN), parent company of Knott’s Berry Farm, has agreed to merge with Six Flags Entertainment Corp. (NYSE: SIX) in a deal that is expected to close early next year.
The newly combined company will have a pro forma enterprise value of approximately $8 billion and is anticipated to generate around $3.4 billion in yearly revenue. Cedar Fair unitholders will own 51.2% of the share capital once the deal is closed.
The transaction will create a combined portfolio of 42 parks and nine resorts which will operate under the name Six Flags and the FUN ticker symbol. Chief executive of Cedar Fair, Richard Zimmerman, will remain in the top role of the newly integrated company with the Six Flags CEO Selim Bassoul becoming chairman of the new board.
“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,” Zimmerman said in a statement.
He added that the merger “creates an enhanced financial profile” with opportunities to increase investment across the parks and also levels of demand, value and spending. Knotts is one of the few companies under Cedar that operates all-year round.
Shares of Ohio-based Cedar Fair fell slightly to $36.96 during midday trading with a market cap of $1.9 billion. The merged firm will be headquartered in North Carolina while keeping certain operations in Ohio.
