Cedar Fair, Six Flags agree to $8 billion theme park merger

Nov. 2 (UPI) -- Cedar Fair and Six Flags amusement park operators said Wednesday they are entering a merger of equals transaction to create a combined company valued at approximately $8 billion.

When this merger closes Cedar Fair shareholders will own approximately 51.2% of the new combined company while Six Flags shareholders will own 48.8%.

The companies did not disclose whether employees will lose jobs in the merger.

"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," said Cedar Fair CEO Richard Zimmerman in a statement.

Both companies' boards of directors approved the merger.

"The combination of Six Flags and Cedar Fair will redefine our guests' amusement park experience as we combine the best of both companies," Six Flags CEO Selim Bassoul said in a statement. "Six Flags and Cedar Fair share a strong cultural alignment, operating philosophy, and steadfast commitment to providing consumers with thrilling experiences."

Zimmerman will be the CEO and President of the combined company. Bassoul will be the executive chairman of the combined company's board of directors.

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.

According to the two companies, benefits of the merger include "an expanded and diversified footprint, a more robust operating model and a strong revenue and cash flow generation profile."

The companies also expect significant cost savings and increased revenue.

"Cedar Fair and Six Flags expect the combined company will benefit from the significant value created by total anticipated annual synergies of $200 million," their joint statement said. " Approximately $120 million of these synergies are expected to be related to identified administrative and operational cost savings, which the companies anticipate realizing within two years following transaction close."