Cedar Fair reviewing SeaWorld's unsolicited offer
Shares of Cedar Fair surged more than 12% on the announcement
Sandusky, Ohio-based theme park operator Cedar Fair says it is carefully reviewing and considering an unsolicited, non-binding buyout proposal from SeaWorld Entertainment.
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Cedar Fair noted in a press release on Tuesday that it is consulting with its financial and legal advisers, Perella Weinberg Partners L.P. and Weil, Gotshal & Manges, to determine the best course of action in the interest of its shareholders.
Bloomberg, the first to report the news, said that SeaWorld made a bid of around $60 per share, citing people familiar with the matter. Representatives for both SeaWorld and Cedar Fair declined to comment.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| SEAS | NO DATA AVAILABLE | - | - | - |
| FUN | SIX FLAGS ENTERTAINMENT | 45.43 | +0.13 | +0.29% |
Shares of Cedar Fair finished Tuesday's trading session at $56.25 apiece, up more than 13%, while SeaWorld shares closed up about 2% at $61.12 apiece.
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Cedar Fair owns and operates 13 properties, including 11 amusement parks, four separately gated outdoor water parks, resort accommodations totaling more than 2,300 rooms and more than 600 luxury RV sites. The company's parks include Cedar Point, California's Great America, Knotts Berry Farm, Valleyfair, Carowinds, Kings Dominion, Kings Island and Dorney Park.
The company, which has been recovering from coronavirus pandemic-induced theme park closures, recently reported total net income of $148 million for the third quarter of 2021, compared to $190 million during the same period in 2019, and record third quarter net revenue of $753 million. Third quarter attendance levels at its parks reached approximately 82% of 2019 levels during the same period.
Millennium Force, a ride at Cedar Point in Sandusky, Ohio, keeps you screaming after its 200 plus drop at the beginning of the ride. (Tricia Spaulding/Lexington Herald-Leader/Tribune News Service via Getty Images / Getty Images)
Meanwhile, SeaWorld posted third quarter net income of $102.1 million and revenue of $521.2 million, up 4.2% and 10% compared to the same period in 2019, respectively. Though SeaWorld's third quarter park attendance increased by 5.7 million guests year-over-year to 7.2 million, attendance was down 11% compared to the third quarter of 2019.
Tourists visit SeaWorld San Antonio in Texas, the United States, on June 19, 2020. (Xinhua/Ma Lie via Getty Images)
Tuesday's announcement comes after Cedar Fair previously rejected a $4 billion takeover offer from Six Flags Entertainment Corporation in 2019.