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Cedar Fair Corporate Development Discussion Thread (FUN)

P. 70: Cedar Fair unveils 2022 operating season plans

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To answer your Magic Mountain question: Los Angeles is much more crowded market than those other places. Entertainment dollars can go to sporting events, other theme parks, concerts, etc.. The average person in Los Angeles probably goes to Six Flags every 3-5 years if they don't have a pass, or not at all if they don't like coasters.

That's a good point. I have met plenty of people in CA who have not been to either Six Flags park and some who have not been to any theme park or amusement park at all, but I haven't met too many Ohioans who haven't been to KI, CP, or both. There's a lot less to do out here compared to LA or even CA as a whole.

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Cedar Fair Signs Definitive Agreement to Acquire Two Iconic Texas Water Parks From Schlitterbahn

https://ir.cedarfair.com/news/news-details/2019/Cedar-Fair-Signs-Definitive-Agreement-to-Acquire-Two-Iconic-Texas-Water-Parks-From-Schlitterbahn/default.aspx?fbclid=IwAR3kjcXRgcrKPF9z20jHT8rVNosiJZjrqnsn30CHjRygTRnr1J-Nc8H6WFs

 

schlitterbahn3_11.jpg.600374bc709e6e1e2dd84e4ca3f4b531.jpg

Company agrees to acquire Schlitterbahn Waterparks and Resorts in New Braunfels, Texas, and Galveston, Texas, along with the right to acquire an additional property in Kansas City, Kansas, for future development

 

Advances strategy to leverage the Company’s management expertise, increase presence in growing and attractive markets and further diversify portfolio

 

SANDUSKY, Ohio--(BUSINESS WIRE)-- Cedar Fair Entertainment Company (NYSE: FUN), a leader in regional amusement parks, water parks and immersive entertainment, today announced that it has signed a definitive agreement to acquire two iconic water parks and one resort in Texas – Schlitterbahn Waterpark and Resort New Braunfels and Schlitterbahn Waterpark Galveston for a cash purchase price of $261 million, subject to certain working capital adjustments related to the timing of the closing. Additionally, Cedar Fair has the right to acquire a property located in Kansas City, Kansas, for a cash purchase price of $6 million.

 

“We are very excited about the opportunity to bring these two award-winning Texas water parks into the Cedar Fair family,” said Richard Zimmerman, Cedar Fair’s president and CEO. “These properties represent new markets for us with attractive demographics in the growing Central Texas region, and they align with our strategy to identify compelling opportunities to accelerate our growth and profitability. The investments we have made over the past five years to strengthen our back-of-house and customer-facing systems will support a smooth integration of these properties by ensuring a premium guest experience, strong team collaboration and superior execution.”

 

Zimmerman continued, “Schlitterbahn employees are known throughout the industry for their innovation and dedication to the quality of the guest experience. Because of their work, the water park located in New Braunfels has been recognized as the ‘Best Water Park in the World’ for 21 straight years, and Galveston has received recognition as the ‘Best Indoor Water Park in the World’ for a decade. We look forward to adding these parks to Cedar Fair’s industry-leading portfolio of regional entertainment resorts.”

 

In 2018, Cedar Fair entertained 25.9 million guests, reported $1.35 billion in annual net revenues and generated Adjusted EBITDA1 of $468 million (35% Adjusted EBITDA margin1). The two Texas water parks and the resort entertained 1.2 million guests in 2018 and generated annual revenues of approximately $68 million. Cedar Fair expects the two Texas locations to achieve an Adjusted EBITDA margin in line with Cedar Fair’s standalone results as management implements a number of growth and operational initiatives at the parks over the next two years, reflecting an accretive EBITDA multiple post synergies. Following this transaction, Cedar Fair’s portfolio will consist of 15 parks, resort accommodations totaling more than 2,000 rooms across six parks, more than 600 luxury RV sites across four parks, and two marinas.

 

In addition to the two Texas properties, Cedar Fair has the right to acquire a third site, located on approximately 40 acres in Kansas City, Kansas, which previously operated as a Schlitterbahn water park, for a cash purchase price of $6 million.

 

The transaction is subject to regulatory approval and other customary terms and conditions, and is expected to close during the second quarter of 2019 subject to those approvals and conditions. The Company intends to finance the transaction through additional long-term borrowings.

 

Perella Weinberg Partners is serving as financial advisor to Cedar Fair, and Squire Patton Boggs is providing legal counsel.

Edited by jedimaster1227
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Can't picture them operating two water parks in a market like KC. Also have a hard time believing some of the concrete slides and lazy rivers (you know, the stuff that didnt kill/maim) will be allowed to stick around in any format. But at least the meth head is out of the picture.

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> acquires the two Texas waterparks for $261 million

> option to acquire the KC one for $6 million

> still thinking about it

 

I mean, it seems like a bargain basement price and may well be worth it for the land alone, but yeah, too much bad blood over there to keep it as a waterpark even under new management.

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The one in KC from my understanding didn't even open last season. If they do buy it I could see them develop it into a sports park like in Sandusky.

 

Schlitterbahn KC isn't even in the same state as Worlds of Fun and WOF's lodging options are basically 30 themed trailers; no rational reason to try and build a sports park to extend visits. I would guess they'd be more interested in possibly selling off the land and eliminating a competitor assuming there's a deal to be struck over the debt it holds (which is sizeable) and then dispersing the water slides across the chain.

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The one in KC from my understanding didn't even open last season. If they do buy it I could see them develop it into a sports park like in Sandusky.

 

bulldoze it and turn it into a Monster Truck park!

 

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I would guess they'd be more interested in possibly selling off the land and eliminating a competitor assuming there's a deal to be struck over the debt it holds (which is sizeable) and then dispersing the water slides across the chain.

 

My first thought.

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Wow this is a surprise. After all the issues with Schlitterbahn, I decided against visiting the Texas location. Now that Cedar Fair owns them, I think I'll visit them someday.

 

It'll be interesting to see if they keep the name or not for the Texas parks.

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I would guess they'd be more interested in possibly selling off the land and eliminating a competitor assuming there's a deal to be struck over the debt it holds (which is sizeable) and then dispersing the water slides across the chain.

 

The whole point of this deal is to pay off that loan and pay for expenses due to the lawsuits. The loan to build Kansas City used the Texas parks as collateral. If they defaulted on the loan then the lender would have received the Texas parks. It was better to do it on their own terms.

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bulldoze it and turn it into a Monster Truck park!

 

 

(Or make one space a HUGE lot of abandoned storage units and charge A&E to film 'Storage Wars' there. A bidder's dream theme park. Cedar Fair needs to get creative!)

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Wow this is a surprise. After all the issues with Schlitterbahn, I decided against visiting the Texas location. Now that Cedar Fair owns them, I think I'll visit them someday.

 

It'll be interesting to see if they keep the name or not for the Texas parks.

I did exactly the same thing. That's a good way for them to get into the Texas market. Smart purchase. The option on the KC one is basically so they can keep anyone else from re-opening the waterpark. That place is done. Fortunately it's also in a growing commercial area near lots of stadiums, so the land has got to be worth more than $6 million.

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I'm glad to see Cedar Fair take a presence in Texas, even though it is just water parks. It would be very cool if (years down the road) they developed a theme park in the Galveston/Houston area. That would be a wonderful location for a mid-size Cedar Fair park.

 

But that's just dreaming...

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I can imagine them putting a coaster or two and some Cedar Fair stuff in both parks in Texas and slowly taking an little aim at the six flags monopoly in the region.

 

This seems highly unlikely. Maybe Galveston, but definitely not New Braunfels.

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Wow this is a surprise. After all the issues with Schlitterbahn, I decided against visiting the Texas location. Now that Cedar Fair owns them, I think I'll visit them someday.

 

It'll be interesting to see if they keep the name or not for the Texas parks.

 

I realize the severity of what you’re referring to however the Schlitterbahn in New Braunfels is easily the best Waterparks out there. You might want to make it down there soon since Cedar Fair has a very corporate way of doing things. Schlitterbahn is (was?) like the water park version of Knoebels

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I realize the severity of what you’re referring to however the Schlitterbahn in New Braunfels is easily the best Waterparks out there. You might want to make it down there soon since Cedar Fair has a very corporate way of doing things. Schlitterbahn is (was?) like the water park version of Knoebels

Completely disagree. I cannot be the only one who always thought that Schlitterbahn in New Braunfels was completely overrated, difficult to navigate, slides were totally "meh", and overall the park was a pain the ass to visit, right?

 

And trust me, I've tried SEVERAL TIMES going to that park with an open mindset and I've always walked away going "I really don't get it."

 

IMO, calling it the Knoebels of water parks is a huge insult to Knoebels.

Edited by robbalvey
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I realize the severity of what you’re referring to however the Schlitterbahn in New Braunfels is easily the best Waterparks out there. You might want to make it down there soon since Cedar Fair has a very corporate way of doing things. Schlitterbahn is (was?) like the water park version of Knoebels

Completely disagree. I cannot be the only one who always thought that Schlitterbahn in New Braunfels was completely overrated, difficult to navigate, slides were totally "meh", and overall the park was a pain the ass to visit, right?

 

And trust me, I've tried SEVERAL TIMES going to that park with an open mindset and I've always walked away going "I really don't get it."

 

IMO, calling it the Knoebels of water parks is a huge insult to Knoebels.

 

Ah, I was wondering why this was the only forum where I’ve seen negative comments about Schlitterbahn.

 

Anyway. Comparing Knoebels to Schlitterbahn isn’t outlandish at all. In fact, I can’t think of a better comparison. Both parks are so incredibly original. They also have that anti corporate feel as well.

 

I understand it might not be for you (or your followers) but it is widely considered to be the best water park.

 

However I do agree with you on the layout of the park. There is certainly an opportunity there.

 

My biggest fear is that Cedar Fair will take out some of these original attractions for some of their cookie cutter slide complexes.

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