We all know the famous theme parks Six Flags and Cedar Park which is also known as Knott’s Berry Farm. These theme parks have brought all of us joy from the moment they opened. Recently both parks have decided to make some changes. Knott’s Berry Farm and Six Flags have decided to join forces to form a leading amusement park operator in the highly competitive leisure space. This will bring together two of North America’s idolized amusement park companies together.
For each unit owned, Knotts Berry Farms stockholders will receive one share in the new combined company, and 0.5800 shares of common stock will belong to the stockholders of Six Flags.
Knott’s Berry Farm’s unit holders will hold roughly 51.2% and Six Flags shareholders will own approximately 48.8% when the transaction closes.
“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,” Richard Zimmerman, president and CEO of Cedar Fair, said.
“The company will work beneath the title Six Flags and exchange beneath the ticker image FUN on the New York Stock Exchange. In spite of the fact that the combined company will be headquartered in Charlotte, North Carolina, “significant finance and administrative operations” will be in Sandusky, Ohio. 42 theme parks and 9 resorts will be operated across 17 US States, Canada, and Mexico.
The merger is anticipated to shut within the beginning of half of 2024, taking after “receipt of Six Flags shareholder endorsement, administrative endorsements and fulfillment of standard closing conditions.” The press discharge states that endorsement by Cedar Reasonable unit holders isn’t required.
The merger is expected to bring about synergies in various aspects, which include operational efficiencies, marketing efforts, and the development of new and innovative attractions. The companies also project that it will result in an estimated $200 million in cost savings.
Although this movement has benefits, there are also some conflicts. Both companies are planning to join forces at a time when the theme park industry is still struggling to recover from the economic fallout of the pandemic.
Many people who attend these parks worry that prices will rapidly increase due to a lack of competition. If both companies are joining together, they won’t have to worry about one-upping each other.
While interviewing Jeff Klein, he stated “ It’s all one big company that owns the theme parks. That’s bad because they can raise all the prices and there is no competition.”
Lusine Shahverdyan, a Saugus Senior also said that “it’s fun that they are combining but prices of theme parks are already expensive as is.”
The real question is will this combined company still include Cedar Parks boysen berry pies at Six Flags?
