Cedar Fair is set to merge with Six Flags, creating a portfolio of 42 theme parks across 17 U.S. states, Canada, and Mexico.
The new company will be worth about $8 billion, taking into account the money it owes and the ownership stakes of both companies as of Oct. 31, according to the agreement announced Thursday.
Under that agreement, Cedar Fair unitholders will get one share in the new company for each unit they own, while Six Flags shareholders will receive 0.5800 shares in the new company for each share they own. After the deal, Cedar Fair unitholders will have about 51.2% of the new company, and Six Flags shareholders will have approximately 48.8%.
“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,” said Richard Zimmerman, president and chief executive officer of Cedar Fair, in a press release. “The combination also creates an enhanced financial profile with strong cash flow generation to accelerate investments in our parks to delight our guests, driving increased levels of demand and in-park value, and spending.”
Cedar Fair owns Cedar Point, Knott's Berry Farm, Schlitterbahn, Canada's Wonderland, and other parks, while Six Flags operates about 20 parks in the U.S., two in Mexico, and one in Canada.
Both companies say they expect to save about $200 million every year with the merger, with $120 million in cost savings within two years after the merger is complete.
The deal is expected to be completed in the first half of the upcoming year; once reached, the combined new company will have its main office in Charlotte, North Carolina. Six Flags is now headquartered in Arlington, Texas. The company will be called Six Flags and trade under "FUN" on the New York Stock Exchange.
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