Cedar Fair and Six Flags are merging to create an expansive amusement park operator, but what could that mean for Gurnee's Six Flags Great America?
The companies combined, worth more than $3.5 billion, will boast 27 amusement parks, 15 water parks and nine resort properties in the U.S., Canada, and Mexico. It will also have entertainment partnerships and a portfolio of intellectual property including Looney Tunes, DC Comics and Peanuts.
A source with knowledge of the merger told NBC Chicago that "no park closures are planned or contemplated." There are also no branding changes planned for any of the parks, the source said.
The merger is expected to not only provide cost saving measures, but also bring a more streamlined approach to park enhancements, officials said.
“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,” Cedar Fair CEO Richard Zimmerman said in a prepared statement.
The source who spoke to NBC Chicago said ride investments can be accelerated, food and beverage options improved and technology enhanced under the deal.
Already this year, Six Flags Great America has announced plans for some renovations.
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The park closed two major rides in what it said was preparation for a "future expansion."
"While we will miss these attractions, it’s time to plan for future expansion!" the park said in its announcement.
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The park said it looks forward to introducing a new "Sky Striker" ride in 2024.
Amusement parks have seen an uptick in revenue but have struggled to raise attendance since the pandemic, even as other entertainment sectors have bounced back. A tie-up between two huge players is expected to at least lower costs.
Cedar Fair reported an attendance of 12.4 million guests in its third quarter, a 1% increase from a year earlier. Six Flags announced a 16% rise in its third-quarter attendance, which totaled 9.3 million guests.
Six Flags and Cedar Fair, which have little geographical overlap, anticipate $120 million in cost savings within two years of closing the deal.
The companies said that given their broader geographic footprint as a single company, seasonal volatility should moderate.
The company will be headquartered in Charlotte, North Carolina, and will keep significant finance and administrative operations in Sandusky, Ohio, where Cedar Fair is based.
Six Flags is now based in Arlington, Texas.
Once the deal closes, the combined company will operate under the name Six Flags and trade under the ticker symbol “FUN” on the New York Stock Exchange.
The transaction, which was approved by both companies' boards, is targeted to close in the first half of next year. It still needs approval from Six Flags shareholders.
