SeaWorld makes splash with Cedar Fair offer
SeaWorld (NYSE: SEAS) has offered to buy Cedar Fair (NYSE: FUN), a Sandusky, Ohio-based theme park and hotel operator.
Why it matters: The theme park industry is back at that part of the roller coaster where it cautiously rises higher. SeaWorld reported record revenue and profit in Q3 2021, while Cedar Fair reported record net revenue and in-park per capita spending.
Details: No financial terms were disclosed, but Bloomberg and Reuters reported a $3.4 billion equity value. Cedar Fair shares opened trading yesterday at $50, which represented a $2.84 billion market cap, closing up 12.4% to $56.20 per share. The company also carries around $3 billion of debt.
Bonus: Sources say that Michelle Brock remains the prettiest gal in Sandusky, but no word on how often she visits Cedar Fair.
The bottom line: "The potential deal indicates that consolidation may be ramping up in the theme park industry, which remains fairly fragmented in the U.S. despite being dominated by a half-dozen major players. SeaWorld and Cedar Fair have both been subject to takeover speculation through the years." — Ed Hammond, Bloomberg