MUSKEGON, Mich. — Michigan's Adventure and Cedar Point's parent company, Cedar Fair, will be merging with Six Flags, according to a news release from the companies.
Cedar Fair and Six Flags Entertainment Corporation announced they will enter into a definitive merger agreement. The combined company will be valued at roughly $8 billion, based on both companies' debt and equity values as of Oct. 31, according to Cedar Fair.
The merger was unanimously approved by the boards of directors for both companies.
The companies will now have operations spread across 17 U.S. states and three countries including Canada and Mexico.
“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 Richard Zimmerman, president and chief executive officer of Cedar Fair. “Together, we will have an expanded and complementary portfolio of attractive assets and intellectual property to deliver engaging entertainment experiences for guests. The combination also creates an enhanced financial profile with strong cash flow generation to accelerate investments in our parks to delight our guests, driving increased levels of demand and in-park value and spending. I have great respect for the Six Flags team and look forward to joining forces as we embark on this next chapter together," he said.
Cedar Fair says it will not only bring in billions of dollars but also more resources like improving rides, expanding food and beverage options as well as developing new exhibits.
The business will be headquartered in Charlotte, North Carolina, and will keep significant finance and administrative operations in Sandusky, Ohio, where Cedar Fair is based.
"Cedar Point is one of the top amusement parks in the United States, and they have called Sandusky home for over 150 years," said Sandusky City Manager John Orzech. "We look forward to continuing our great partnership with Cedar Point to further position Sandusky as a premier destination in the Great Lakes region. Additionally, the City has been assured that the current Cedar Fair administrative and finance operations in Sandusky will remain here after the merger with Six Flags is complete. We expect that Cedar Point will remain one of the flagship parks in the new company and we will continue to ensure that Cedar Point’s presence here not only makes Sandusky a great place to visit, but also a great place to live," he said.
The combined companies will operate 27 amusement parks and 15 waterparks across 17 states and three countries.
“The combination of Six Flags and Cedar Fair will redefine our guests’ amusement park experience as we combine the best of both companies,” added Selim Bassoul, president and chief executive officer of Six Flags. “Six Flags and Cedar Fair share a strong cultural alignment, operating philosophy, and steadfast commitment to providing consumers with thrilling experiences. By combining our operational models and technology platforms, we expect to accelerate our transformation activities and unlock new potential for our parks. We are excited to unite the Cedar Fair and Six Flags teams to capitalize on the tremendous growth opportunities and operational efficiencies of our combined platform for the benefit of our guests, shareholders, employees, and other stakeholders.”
Six Flags added they hope to bring improvements to the parks across the country including safaris, animal experiences, sports facilities, luxury loungers and even ride upgrades.
The merger will also create a loyalty program for season pass holders, with points for extra perks.
Despite the news from both corporations, not everyone is sold on the merger. Ray Vedic is an avid park enthusiast from Ohio. He's been going to Cedar Point throughout his childhood, and his passion for parks carried into adulthood.
"It's just the best place in the whole world and I still have that feeling every time I go," said Ray Videc, an avid park enthusiast. "On top of that, I am big into all the Cedar Fair parks. So, I travel around the country and, in fact, over the last year and half of last year I have 83 visits to all the Cedar Fair parks, and I’ve been to all of them now."
He fears with the headquarters moving to North Carolina from Ohio, it will impact local parks' quality.
"I’m also a diamond member at Six Flags and have been to a lot of the Six Flags Parks," said Vedic. "Some of them are okay, but none of them are up to the standards of Cedar Fair parks. As far as the quality, the parks are pretty run down; the food isn't that good. I think it’s going to slow down what we have going at Cedar Fair."
Once the deal closes, the company will operate under the name Six Flags. The deal, which has been approved by both companies' boards is set to close in the first half of next year.
FOX 17 reached out to Cedar Fair for comment to see if they have any idea how this will impact Michigan's Adventure.
