Cedar Fair, owners of parks such as Cedar Point, Kings Island and Knott’s Berry Farm, is exploring a potential merger with fellow theme park chain Six Flags, according to Reuters.
What’s Happening:
- A tie-up between the two companies would come as concerns about a U.S. economic slowdown and consumers curbing their discretionary spending have weighed on their stock performance. Merging would allow them to weather a slowdown from a stronger position.
- The companies previously discussed a possible combination, including in 2019, and there is no certainty that the latest deliberations will result in an agreement.
- If there is an agreement, it could come as early as Thursday, when Cedar Fair reports quarterly earnings.
- Cedar Fair and Six Flags, which have a market value of $1.8 billion and $1.7 billion, respectively, did not respond to requests from Reuters for comment.
- Cedar Fair shares and Six Flags rose more than 6% and 7% when this news dropped, respectively, in afternoon trading in New York.
- Cedar Fairs owns 11 amusement parks and four gated outdoor water parks in 10 U.S. states and in Toronto, Ontario.
- Six Flags is the largest operator of water parks in North America, with 27 parks across the United States, Mexico and Canada.