NEWS: Herschend buying Palace Entertainment US properties

[tndank]

Hesrchend and Parques Reunidos have announced a new agreement for Herschend to acquire all of Palace Entertainment's U.S. entertainment properties currently owned by Parques Reunidos. This will bring more than 20 new venues into the Herschend family of properties including Kennywood, Lake Compounce, Dutch Wonderland and more.

https://www.hfecorp.com/whats-new/herschend-to-acquire-palace-entertainments-us-attractions-from-parques-reunidos/

Herschend and Parques Reunidos have signed a definitive agreement under which Herschend will acquire all of Palace Entertainment’s U.S. entertainment properties from Parques Reunidos. This agreement represents a significant milestone for both organizations—supporting Herschend’s strategic expansion in family entertainment and hospitality while allowing Parques Reunidos to reinforce its strategic focus on its core European market.

“This year, we’re celebrating 75 years of bringing families closer together—and looking ahead to the next 75,” said Andrew Wexler, CEO of Herschend. “Today’s announcement marks a natural expansion and continuation of that vision. By growing wisely and staying true to our purpose, we are building a future where we can continue creating memories worth repeating for generations to come.”

Palace Entertainment’s over 20 historic and beloved entertainment venues across 10 U.S. states will join Herschend’s growing family of world-class destinations. Palace’s diverse portfolio of amusement parks, water parks, family entertainment centers, campgrounds, and hotels includes notable properties like Kennywood in Pa., Pittsburgh’s thrill and entertainment destination known for its classic wooden coasters and modern thrill rides; Dutch Wonderland in Lancaster, Pa., the world’s best family park and kingdom for kids; and Lake Compounce in Conn., which holds the title of America’s First Amusement Park and features the renowned Boulder Dash wooden roller coaster.

With this acquisition, Herschend will strengthen its position as the world’s largest family-held themed entertainment company, with a broad portfolio of brands spanning theme parks, aquariums, resorts, and immersive attractions that collectively entertain more than 20 million annual guests.

“We look forward to building upon the strong foundation that Palace Entertainment has created and welcoming these properties and hosts into the Herschend family of brands,” added Wexler. “The teams at these parks have done an incredible job building beloved destinations in their communities, and we look forward to learning from them, growing together, and building on their success. This is an exciting opportunity for all of us to continue creating exceptional experiences for guests and meaningful opportunities for our teams.”

“Herschend is the ideal organization to lead Palace Entertainment’s unique properties,” said John Reilly, Palace Entertainment Chief Executive Officer. “Herschend is best in class in providing a high-quality guest experience within its parks. Palace Entertainment's team members and its parks are in great hands as we make this transition.”

"Being a family business for 75 years has given us a deep understanding of what makes properties like these special—not just the rides and attractions, but the people who pour their hearts into them every day,” said Herschend’s Board Chair, Chris Herschend. “These historic and beloved properties have been family traditions for generations, and we are honored to help carry that legacy forward.”

Herschend is committed to ensuring a smooth transition for employees (hosts), guests, and communities. No immediate changes are planned for daily operations as the company thoughtfully integrates these properties into its portfolio. In the coming months, Herschend will prioritize:

• Supporting its new employees with training, resources, and opportunities aligned with Herschend’s people-first culture.
• Maintaining continuity in guest experiences while exploring enhancements that align with Herschend’s commitment to high-quality entertainment.
• Proactively communicating with employees, guests, and local communities as the transition progresses.

The transaction is subject to customary closing conditions and is expected to close thereafter. BDT & MSD Partners is acting as Herschend’s exclusive financial and debt advisor and Goldman Sachs was the exclusive committed financing provider for the acquisition. Akerman, LLP is serving as legal advisor to Herschend on the acquisition, with Kilpatrick Townsend & Stockton LLP providing legal advice for the debt financing. J.P. Morgan is acting as the exclusive financial advisor for Parques Reunidos Group. A&O Shearman is serving as legal advisor to Parques Reunidos Group on the transaction.

[bert425]

Think that’s great for all involved 

[AmyUD06]

Agreed, Bert.  I think it especially bodes well for places like Kennywood, which have suffered quite a few mis-steps recently.

[Rai Fox]

This is the best thing that could possibly happen to Lake Compounce.  I'd been seriously starting to wonder how much longer it was going to be around with the way it's decayed over the last decade.  As someone who had a season pass every year from 2004 to 2019, but hasn't been since then, I'm excited to see what the next few years look like there now.  Kennywood definitely needs the help too.

[CaptainUnknown]

I am quite intrigued by this news. I have yet to decide if it's going to be a net positive, neutral, or negative thing.

I know a lot of people don't like Palace. But aside from Steel Curtain being down for my day at Kennywood and a Karen encounter at Idlewild, I've had positve experiences at their parks. While SDC is the only Herschend park I've visited yet, I can not spend enough time there.

Herschend doesn't do High Thrill Halloween events. As soon as they bought Kentucky Kingdom, it got axed a year or two after it began. Will the relevant Legacy Palace park (Kennywood, Adventureland, Lake Compounce) keep their events, or will they switch to the more family friendly events?

Herschend has done very little with Wild Adventures since picking it up in 2007. They're really only now touching Kentucky Kingdom. Show of hands: who remembers they had Darien Lake for a minute? How are they going to treat the new parks?

I'm a big fan of the Palace Potato Patch fries. I hope they keep those/spread them to Legacy Herschend parks. Also, spread the Cinnamon Bread to Palace.

Prior to this news, I would've put money down that Herschend would have acquired Six Flags Frontier City and/or Lost Island.

Adventureland recently announced they're converting the onsite Adventureland Inn to employee housing (accompanying campground and restaurant will still be public). Depending on how long this deal was in the works, I wonder which company made that decision; and if it was Palace, will Herschend reverse it?

[pianojohn]

Two words: Cinnamon bread!
I was so happy to read this news. If they can bring all of these parks up to Dollywood levels, that would be amazing.

[SoCalJasonland]

This sounds positive but I wonder what they can do to save Castle Park, in Riverside, California?  Does Herschend have enough money to fix Palace in enirety or will they sell parks to find changes for the top parks?

[abovethesink]

I am not 100% sure what to expect here, but I was not a fan of the status quo at these Palace parks and you've gotta be hopeful that they are at least likely to treat Kennywood to nearly on par with Dollywood and Silver Dollar City, right? I could see a three tier system forming pretty quickly in this chain. The three big parks I have mentioned would get the biggest and most consistent investments. A second tier of Kentucky Kingdom, Adventureland, and Lake Compounce might not get the same highs or consistency, but I could definitely see Herschend doing some big investments here and there like they have announced for KK. I can't see them doing much with the rest of all their properties though.