SANDUSKY, Ohio & ARLINGTON, Texas - Cedar Fair, L.P. (NYSE: NYSE:FUN) and Six Flags (NYSE:SIX) Entertainment Corporation (NYSE: SIX) announced today that they have met all regulatory requirements to proceed with their planned merger. The transaction is expected to close on July 1, 2024, with the combined entity to be named Six Flags Entertainment Corporation.
The merger, described as a merger of equals, will see the new company trading under Cedar Fair's current ticker symbol, FUN, starting July 2, 2024, on the New York Stock Exchange. This move follows a comprehensive review by the Department of Justice, which concluded without raising any objections to the merger.
According to Six Flags President and CEO Selim Bassoul, who is set to become the executive chairman of the board of the merged company, this step marks a significant milestone. The combined efforts of the teams from both companies are expected to enhance the entertainment experience for guests across North America.
Cedar Fair President and CEO Richard Zimmerman, who will maintain his role in the new organization, highlighted the synergies of the merger. He mentioned that the combined company, with a projected enterprise value of around $8 billion, aims to leverage Cedar Fair's guest experience and Six Flags' attraction designs to drive growth and innovation.
The information provided is based on a press release statement and is intended for informational purposes only.
In other recent news, Cedar Fair recently reported robust financial results with net revenues reaching $102 million. This was attributed to higher season pass sales and favorable weather conditions.
Analyst firms, including B.Riley, Deutsche Bank (ETR:DBKGn), Citi, Truist Securities, and Stifel, have maintained Buy ratings on Cedar Fair's stock, reflecting confidence in the company's strategic positioning and the expected financial benefits from the merger.
InvestingPro Insights
As Cedar Fair, L.P. (NYSE: FUN) gears up for the anticipated merger with Six Flags Entertainment Corporation, investors are closely monitoring the company's financial health and market performance. Here are some key metrics from InvestingPro that shed light on Cedar Fair's current financial position:
InvestingPro Data:
- Market Cap (Adjusted): $2.52 billion USD
- Revenue Growth (Quarterly) for Q1 2024: 20.18%
- Price % of 52 Week High: 93.76%
The recent quarterly revenue growth of 20.18% for Q1 2024 is a strong indicator of Cedar Fair's ability to increase its earnings, which could be a positive sign for the combined company post-merger. Additionally, with the stock price nearing its 52-week high at 93.76%, investor confidence seems to be holding steady.
InvestingPro Tips suggest that potential investors might want to consider the company's solid market capitalization and its ability to grow revenue when evaluating the stock. Moreover, there are additional InvestingPro Tips available that could provide more in-depth insights into Cedar Fair's performance and the potential impact of the merger. To access these tips and take advantage of the wealth of financial analysis available, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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