Private equity firm Apollo Management on Wednesday said it has agreed to buy California's Great America owner Cedar Fair in a deal valued at $635 million. Along with refinancing cost of Cedar Fair's debt, the total transaction value would be around $2.4 billion.
How the sale would impact the proposed San Francisco 49ers stadium in Santa Clara, which Cedar Fair has sued to block, remains unclear.
According to the Ohio-based Cedar Fair, at $11.50 a share the price offers a 28 per cent premium over the closing price for its stock on Tuesday.
Besides Great America, Cedar Fair runs Gilroy Gardens Family Theme Park. Altogether, it owns and operates 11 amusement parks, six outdoor and one indoor water parks and fiver hotels.
The company reported annual sales for the year ended September of $929 million, which was less than 6 per cent from the year before while net income plunged to about a tenth at $5 million from more than $50 million a year ago.
Shareholders of the Sandunsky, Ohio-based company will receive $11.50 in cash for each Cedar Fair Limited Partnership Unit held, the company said.
Last month Cedar Fair posted a third quarter revenue that fell 4 per cent to $519.9 million and said it would review alternatives to improve operating performance.
Last month the company slashed its dividend and said it would continue to pursue sale of its excess land to reduce debt and strengthen its balance sheet.
The deal would need shareholder and regulatory approvals.