CHARLOTTE, N.C. - Six Flags (NYSE:SIX) Entertainment Corporation (NYSE: FUN), the leading amusement park operator in North America, announced today the completion of its merger with Cedar Fair (NYSE:FUN), L.P., creating a significant presence in the entertainment industry effective July 1, 2024. The combined entity will continue to operate under the Six Flags name.
Following the closure of the markets on July 1, 2024, trading of Cedar Fair units and Former Six Flags common stock concluded on the New York Stock Exchange. Shares of the newly formed Six Flags Entertainment Corporation will commence trading under the ticker symbol FUN starting July 2, 2024.
According to the terms of the merger agreement, Cedar Fair unitholders received one share of Six Flags Entertainment Corporation common stock for each unit they held. Shareholders of the Former Six Flags were allotted 0.5800 shares of the new company's common stock for each share owned.
Richard Zimmerman, president and CEO of Six Flags Entertainment Corporation, expressed confidence in the merger's ability to unlock greater value and opportunities.
Zimmerman emphasized the enhanced offerings and performance resulting from the combination of assets and intellectual property from both Cedar Fair and Former Six Flags. The merger is expected to strengthen the company's financial profile and cash flow, facilitating further investments in park experiences.
Selim Bassoul, executive chairman of the board, highlighted the potential for the new Six Flags to deliver unparalleled joy and excitement to regional park guests, building on the best practices from both companies.
The company confirmed that each park within the combined portfolio will maintain its legacy branding, with no current plans to alter park names.
Six Flags Entertainment Corporation, now encompassing 27 amusement parks, 15 water parks, and nine resort properties across the U.S., Canada, and Mexico, aims to provide immersive experiences through its extensive portfolio of intellectual properties, including Looney Tunes, DC Comics, and PEANUTS.
Advisors for the deal included Perella Weinberg Partners and legal counsels Weil, Gotshal & Manges LLP and Squire Patton Boggs (US) LLP for Cedar Fair, while Goldman Sachs (NYSE:GS) & Co. LLC and Kirkland & Ellis LLP advised Former Six Flags.
The forward-looking statements in the press release reflect the company's expectations and are subject to uncertainties and changes in circumstances, with no guarantee of future performance or outcomes. The merger's success may be influenced by various factors, including market and economic conditions, as well as the ability to manage integration and achieve the anticipated benefits of the merger.
This article is based on a press release statement from Six Flags Entertainment Corporation.
InvestingPro Insights
As Six Flags Entertainment Corporation (NYSE: FUN) heralds a new era with the completion of its merger, the company's financial health and stock performance come into focus. According to InvestingPro data, Six Flags boasts a current market capitalization of $2.71 billion, reflecting the market's valuation of the company post-merger. The company's P/E ratio stands at 21.4, which aligns with the industry average, suggesting a balanced valuation of its earnings.
InvestingPro Tips indicate a robust performance with a strong return over the last month of 26.02% and an even more impressive three-month price total return of 29.45%. This upward trend is underscored by a six-month price total return of 38.49%, signaling investor confidence in the company's direction following the merger.
Moreover, analysts predict that the company will be profitable this year, a sentiment supported by the company's positive earnings per share (EPS) of $2.48 for the last twelve months as of Q1 2024.
Investors should note that while the company's short-term obligations exceed its liquid assets, the strong returns and positive outlook may cushion any immediate financial pressures. For more in-depth analysis and additional InvestingPro Tips, which currently number over six for Six Flags, visit https://www.investing.com/pro/FUN. Use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, unlocking a wealth of financial insights and data to inform your investment decisions.
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