Six Flags merges with Cedar Fair to create $3.4 billion amusement park giant

Six Flags Entertainment and Cedar Fair have announced plans to merge, creating a $3.4 billion amusement park conglomerate with operations spanning across 17 states, Mexico, and Canada. The newly combined company will retain the Six Flags name.

Together, the two companies oversee 27 amusement parks, 15 water parks, and nine resort properties. They also have partnerships that grant them the rights to use characters from Looney Tunes, DC Comics, and Peanuts.

This merger is not anticipated to impact the operations of Six Flags Over Georgia in Mableton or Six Flags White Water in Marietta, both prominent properties in Georgia, but is expected to yield approximately $200 million in annual savings.

The merger will involve a stock exchange between the shareholders of each company and is aimed at generating funds for significant investments in technology, food, and beverages, ultimately enhancing the visitor experience.

Selim Bassoul, the current President and CEO of Six Flags, will become the Executive Chairman of the combined company’s board of directors. Richard Zimmerman, the current President and CEO of Cedar Fair, will continue to hold those positions in the merged entity.

Six Flags Over Georgia, sprawling across 290 acres, boasts 12 roller coasters and opened in 1967 as the second Six Flags park in the series, following the inaugural Six Flags Over Texas in 1961. Six Flags White Water, covering 70 acres, is recognized as the largest water park in the South and was initially known as White Water Atlanta in 1984 before adopting the Six Flags White Water name in 1999.

The merger agreement is being pursued as attendance at amusement parks begins to recover from the pandemic’s adverse impact, though competition for consumer spending remains intense. In the third quarter of this year, Six Flags reported an attendance of 9.3 million, marking a 16% increase compared to the same period in the previous year. Cedar Fair reported 12.4 million guests, representing a 1% rise from the prior year.

Six Flags is currently headquartered in Arlington, Texas, and Cedar Fair is based in Sandusky, Ohio. However, the combined company will have its headquarters in Charlotte. The merger is expected to be finalized in the first half of the next year.

Under the agreement, Six Flags shareholders will receive 0.58 shares of the newly merged company for every share they currently hold, while Cedar Fair shareholders will receive one share of stock for each of their existing shares. After the transaction is completed, Cedar Fair shareholders will own 51.2% of the company, and Six Flags shareholders will own 48.8%. Both companies also released their earnings reports, with Six Flags reporting $547 million in revenue and $111 million in net income in the latest quarter, while Cedar Fair reported revenue of $842 million and net income of $215 million.