Jon34MA Posted October 7, 2009 Share Posted October 7, 2009 After months of negotiations, Anheuser-Busch InBev announced this morning that it will sell SeaWorld Orlando-owner Busch Entertainment Corp. to the Blackstone Group for as much as $2.7 billion. Blackstone, the New York-based private-equity giant, will pay AB InBev $2.3 billion in cash plus give the beer brewer a right to participate in its return on investment up to $400 million. The deal has sweeping implications both for Orlando and the global tourism industry. Orlando-based Busch Entertainment is the second-busiest theme-park operator in the United States, with a chain of 10 theme parks that stretches from Pennsylvania to California and draws roughly 25 million visitors a year. It has approximately 10,000 employees in Central Florida alone, where its properties include SeaWorld, Aquatica and Discovery Cove. Blackstone, meanwhile, already holds a 50 percent stake in Orlando's No. 2 theme-park resort -- and fierce SeaWorld competitor -- Universal Orlando. The buyout firm also owns Merlin Entertainments Group, the British amusement-park operator with properties such as Legoland theme parks and Madame Tussauds Wax Museums. Blackstone is expected to retain Busch Entertainment's management and operate the company as a standalone investment. "Blackstone sees tremendous opportunity for investing in leading businesses within the media and entertainment industries, where we have significant expertise," Michael Chae, a senior managing director at Blackstone, said in a prepared statement."We are delighted to be investing in a company with such iconic brands, irreplaceable assets and strong growth prospects. We look forward to working with BEC management in continuing a legacy of delivering world-class family entertainment to our customers." A-B InBev had been seeking a buyer for its theme parks since completing the $52 billion merger of beer giants InBev and Aheuser-Busch last year. Executives have said they want to sell of non-core assets to use the proceeds to pay down debt stemming from the merger. "Busch Entertainment Corporation is a high-performing asset with a world-class management team, but not a core business for Anheuser-Busch InBev," A-B InBev's Carlos Brito said in a written statement. "We are pleased to have reached an agreement with a buyer who understands the industry and has a strategic vision for the business. The sale of BEC represents another important milestone in our commitment to de-leverage the company and will also allow us to continue to focus on our core brewing business." Busch Entertainment President Jim Atchison was to address employees at the company's Orlando headquarters moments after the sale was announced. "This transaction represents an exciting new chapter for BEC and the thousands of dedicated employees of our team," Atchison said in a written statement. "Blackstone understands our parks are built on an unwavering commitment to quality and a focus on the guest experience. Blackstone is uniquely experienced to help us take the company to new heights, and I look forward to working together to grow this great business." The sale of Busch parks has been closely watched in financial circles. It is the largest private-equity buyout so far this year. Source:www.orlandosentinel.com/business/orl-seaworld-orlando-sold-100709,0,1554695.story Link to comment Share on other sites More sharing options...
Homeboy23 Posted October 7, 2009 Share Posted October 7, 2009 I have no problem with Blackstone running the parks. I don't think anything will turn out bad. Link to comment Share on other sites More sharing options...
PriestofSyrinx Posted October 7, 2009 Share Posted October 7, 2009 Sweet. Blackstone will definately keep the parks up to a high standard. My only question though is over the name and the Clydsedales... Link to comment Share on other sites More sharing options...
chemical_echo Posted October 7, 2009 Share Posted October 7, 2009 ^Blackstone Gardens? Link to comment Share on other sites More sharing options...
Bolliger&Mabillard Posted October 7, 2009 Share Posted October 7, 2009 Seems like a Universal Orlando vacation will now take a couple more days... Link to comment Share on other sites More sharing options...
robbalvey Posted October 7, 2009 Share Posted October 7, 2009 Seems like a Universal Orlando vacation will now take a couple more days... I'm not even sure what you mean by this. Link to comment Share on other sites More sharing options...
Hercules Posted October 7, 2009 Share Posted October 7, 2009 ^ Exactly. SeaWorld and the park potential formally known as Busch Gardens Africa aren't going to become a part of the Universal Resort or anything...... Link to comment Share on other sites More sharing options...
cfc Posted October 7, 2009 Share Posted October 7, 2009 This was posted on the "Worlds of Discovery" blog by Jim Atchison, president: To Our Valued Guests: A short time ago, Blackstone Capital Partners V L.P., an investor fund advised by The Blackstone Group, announced that it had reached agreement with Anheuser-Busch InBev to purchase the company’s entertainment park division, Busch Entertainment Corporation (BEC). While you may have never heard of BEC, if you are reading these words you know who we are. BEC operates 10 Worlds of Discovery – SeaWorld Orlando, SeaWorld San Diego, SeaWorld San Antonio, Busch Gardens Tampa, Busch Gardens Williamsburg, Discovery Cove, Aquatica, Sesame Place, Adventure Island and Water Country USA – some of the best-known and most-loved entertainment parks in the world today. More than 25,000 men and women make up our team. Each is dedicated to providing you the very finest family entertainment experiences and service anywhere. For all of us at Worlds of Discovery, this is an exciting development. This new phase in our history is an opportunity to rededicate ourselves to the principles that have guided us for the last 50 years. This is also our opportunity to make a promise to you. We pledge to deliver an experience that exceeds your expectations; an experience that brings you closer to those you love; an experience that is as enriching as it is thrilling and fun. Visit a Worlds of Discovery park. If it isn’t everything you hoped it would be, contact us. We’ll refund your admission. On behalf of the Worlds of Discovery team, thank you for your interest in our great parks. We hope to see you soon in one of our Worlds of Discovery. Take this as you will, but I wonder if the "new" name will be . . . "Worlds of Discovery." Stay tuned. Link to comment Share on other sites More sharing options...
bgeguy Posted October 7, 2009 Share Posted October 7, 2009 BEC will continue to run as "Busch Entertainment Corporation" but will market the parks as "Worlds of Discovery," as they have been for the past two years. Busch Gardens will be named Busch Gardens, beer will still be supplied by A-B, but here's the worst part: say bye-bye to the Clydesdales. Link to comment Share on other sites More sharing options...
Crazy4Coasters! Posted October 7, 2009 Share Posted October 7, 2009 Here's another article from MSNBC... Anheuser-Busch InBev sells theme parksUp to $2.7 billion in deal to help pay for InBev's buyout of Anheuser-Busch NEW YORK - Anheuser-Busch InBev SA, the world's largest brewer, said Thursday that it will raise $2.7 billion from selling its U.S. theme parks to the Blackstone Group. The sale of three SeaWorld parks, two Busch Gardens parks and five others is the largest of a string of AB InBev selloffs to help pay for the $52 billion takeover deal that formed it last year. AB InBev's Busch Entertainment Corporation is the second-largest theme park operator in the United States after Disney and attracts some 25 million visitors every year. AB InBev chief executive Carlos Brito said the theme parks were "not a core business" for the maker of the world's best-selling beer Budweiser and that the sale was "another important milestone in our commitment to de-leverage the company." "We are pleased to have reached an agreement with a buyer who understand the industry and has a strategic vision for the business," he said. "We have great respect for BEC's management and employees and know they will continue to prosper under Blackstone's ownership." Blackstone will pay $2.3 billion in cash and give AB InBev the right to participate in Blackstone's return on its initial investment, an amount that is capped at $400 million. BEC runs three SeaWorld parks in Orlando, Florida, San Antonio, Texas and San Diego, California as well as two Busch Gardens parks in Tampa, Florida and Williamsburg, Virginia. It also has family entertainment attractions in Orlando, Tampa, Williamsburg and Langhorne, Pennsylvania. Blackstone said it had "long admired" the theme parks and planned to invest in and grow the company. "We are delighted to be investing in a company with such iconic brands, irreplaceable assets and strong growth prospects," said senior managing director Michael Chae. http://www.msnbc.msn.com/id/33210164/ns/business-world_business/ Link to comment Share on other sites More sharing options...
robbalvey Posted October 7, 2009 Share Posted October 7, 2009 but here's the worst part: say bye-bye to the Clydesdales. Why is that so bad? I can honestly say that I don't go to any Busch or Sea World park to "See the Clydesdales." If you want to see them so badly...go to your state fair or a NASCAR event. --Robb Link to comment Share on other sites More sharing options...
ginzo Posted October 7, 2009 Share Posted October 7, 2009 I think this is good news for all interested parties. InBev never seemed that interested in the AB parks to begin with. Link to comment Share on other sites More sharing options...
cfc Posted October 7, 2009 Share Posted October 7, 2009 but here's the worst part: say bye-bye to the Clydesdales. Why is that so bad? I can honestly say that I don't go to any Busch or Sea World park to "See the Clydesdales." If you want to see them so badly...go to your state fair or a NASCAR event. --Robb I'd rather keep the Clydesdales and lose the lousy beer. Link to comment Share on other sites More sharing options...
BeemerBoy Posted October 7, 2009 Share Posted October 7, 2009 As long as they don't install any Intamin cables, the parks should be okay. At least, that's what I've been told. Link to comment Share on other sites More sharing options...
ginzo Posted October 7, 2009 Share Posted October 7, 2009 ^Not true. The shrapnel from Intamin cables at nearby parks will spray all over the place and tear you into 1,000,000,000 pieces. Link to comment Share on other sites More sharing options...
SharkTums Posted October 7, 2009 Share Posted October 7, 2009 If anything, I only see this as positive. I really don't see any problems. A company that didn't want the parks got rid of them, and a company with a decent reputation and great parks got them! Now, if only we can get them to build a Legoland in Orlando I'll be happy! Plus, even if they plan to continue to run them as 'separate entities' I'll be curious to see some new ticketing options. They have to try and compete with Disney's Magic Your Way tickets. Link to comment Share on other sites More sharing options...
Jon34MA Posted October 7, 2009 Author Share Posted October 7, 2009 One big change I think we will see almost immediately will be the price of beer in the parks. A-B Inbev most likely sold beer to the parks at cost with little markup. So buying a beer in the park only cost $3 to $4, unless Blackstone has some way of keeping that deal going for a while I think we will start seeing the usual $6 beers at all the parks. Glad I don't drink beer at all. Link to comment Share on other sites More sharing options...
cfc Posted October 7, 2009 Share Posted October 7, 2009 There's been a fair amount of tension between park employees and InBev locally (thanks to cuts in pay and staff, loss of the free beer samples through the Brewmaster's club, and the cutting off of free park passes for brewery employees--or so I'm told). So, I think that the Blackstone deal is a good thing overall. At least the parks will be in the hands of someone who wants to be on the theme-park business. Link to comment Share on other sites More sharing options...
alpengeist04 Posted October 7, 2009 Share Posted October 7, 2009 I couldn't agree more about this being a good thing. The parks would have just stayed in limbo as long as Inbev was owning them. This way BEC can move forward and continue to improve and expand the parks. Also, it will be interesting to see if the Busch parks and Universal do come up with new combo ticket options. ...I'm sure they will. Link to comment Share on other sites More sharing options...
DBru Posted October 7, 2009 Share Posted October 7, 2009 ^Would that not cause them to lose money? Link to comment Share on other sites More sharing options...
cfc Posted October 7, 2009 Share Posted October 7, 2009 ^That depends. I think what little they lose in admission revenues could be offset with gains in food sales and merchandise at the parks (where the real money is). But this is all just idle speculation on my part. Link to comment Share on other sites More sharing options...
ginzo Posted October 7, 2009 Share Posted October 7, 2009 ^Disney has done pretty well with that strategy of giving you huge discounts on admission for adding extra days. The longer they've got you in their parks the better, I guess. More chances for buying food, drink, impulse items, etc. Link to comment Share on other sites More sharing options...
Hercules Posted October 7, 2009 Share Posted October 7, 2009 As said, it would definitely spike in park sales. A combo ticket plan would get people who wouldn't have initially gone to the one park or two in the first place into the gate. I'm sure there would be people willing to spend an extra day if they got a decent deal on another park, and subsequently buy food and merchandise. Link to comment Share on other sites More sharing options...
JEAPUgrad Posted October 7, 2009 Share Posted October 7, 2009 ^that works perfectly fine in resorts, such as Disney, where there have many other opportunities like hotel room revenue and a restaurant/shopping district, that none of the BEC parks have to my knowledge. Disney doesn't have to suck their guests dry at the gate. They'll get their money by having guests stay on their property for their entire stay. I can't speak of what is out West but I know that both BGA/BGE aren't resorts. BGE is in the epicenter of a tourist destination but the surrounding attractions like Colonial Williamsburg don't contribute to BGE's bottom line. Link to comment Share on other sites More sharing options...
Homeboy23 Posted October 7, 2009 Share Posted October 7, 2009 I had a laugh reading this comment on a local news website: It will for sure go down hill, just like every company that has bought Kings Dominion over the years. The new investor is so anxious to turn a profit, that they will do so on the backs of their employees and customer service Link to comment Share on other sites More sharing options...
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