Cedar Fair L.P., who owns seven amusement parks and five water parks, announced today that they have signed an agreement to buy the Paramount Parks. Cedar Fair will acquire the Paramount Park stocks for a cash purchase of $1.24 billion.
The transaction is subject to certain conditions. These conditions include regulatory approval and other terms and conditions customary for transactions of this type, and are expected to close during the third quarter. More in depth details were not announced.
In 2005, the five Paramount Parks include Paramount Canada's Wonderland, Paramount's Carowinds, Paramount's Great America, Paramount's Kings Dominion, and Paramount's Kings Island brought revenues of about $423 million while entertaining 12.2 million guests. Cedar Fair brought in 12.7 million guests and reported revenues of $569 million. Together, the two companies made almost $1 billion and entertained about 25 million guests in 2005.
Cedar Fair will have a ten-year lease for the Paramount name. Dick Kinzel, owner of Cedar Fair L.P., said that parks like Kings Island and Kings Dominion will keep their names. Cedar Fair will honor the four-year lease with Nickelodeon at the Paramount Parks. The evaluation of the possibility to renew the contract will take place after the four years are over.
Kinzel feels that purchase of Paramount Parks will be good for Cedar Fair because Paramount operations are about the same as Cedar Fair's. There are no plans to merge the season passes this year, but Cedar Fair will see if merging season pass admission to all parks is feasible for the 2007 season.