In a significant move for the amusement park industry, Cedar Fair and Six Flags Entertainment have agreed to merge. The merger, which is expected to close in the first half of 2024, is aimed at boosting post-pandemic recovery as smaller U.S. amusement park operators grapple with low leisure spending due to an uncertain economic outlook.
The combined company will operate 27 amusement parks, 15 water parks, and 9 resort properties across 17 states in the United States, Canada, and Mexico. Cedar Fair, the parent company of Cedar Point, currently owns 11 amusement parks, while Six Flags has 27 parks, including one under construction in Saudi Arabia.
The merger is a strategic move designed to generate strong revenue and cash flow, mitigate the impact of seasonality, and reduce earnings volatility. The companies have considered a deal in the past, with talks occurring as early as 2019.
The announcement of the merger, a $2 billion deal, has led to a sharp rise in shares for both park operators, indicating positive market response. This merger is set to create a theme park powerhouse, potentially reshaping the landscape of the amusement park industry.