Nemesis Storm PRO 1:12pm, 23 May 2006


SANDUSKY, OHIO, May 22, 2006 -- Cedar Fair, L.P. (NYSE: FUN), a publicly traded partnership which owns and operates seven amusement parks and five water parks, today announced that it has signed a definitive agreement for the acquisition of the Paramount Parks. Cedar Fair, L.P. will acquire the stock of Paramount Parks, Inc., a wholly owned subsidiary of CBS Corporation (NYSE: CBS) (NYSE: CBSA) for a cash purchase price of $1.24 billion.

The five Paramount Parks consist of Canada’s Wonderland near Toronto, Canada; King’s Island near Cincinnati, Ohio; King’s Dominion near Richmond, Virginia; Carowinds near Charlotte, North Carolina; and Great America located in Santa Clara, California.

“This transaction offers a unique opportunity for us to acquire a world-class asset portfolio,” said Dick Kinzel, Cedar Fair’s chairman, president and chief executive officer. “It is not every day that we have the chance to purchase five great family-oriented parks that fit extremely well with our existing parks. This acquisition will provide exciting new growth opportunities and the potential for meaningful incremental free cash flow as we realize $20-$30 million in annual cash flow synergies over the next 3-5 years. It will also add significant geographic diversity to our portfolio of parks and improve our position as one of the largest regional amusement park operators in the world.”
RSantaferraro 12 years ago
Why has Cedar Fair been so eager to pick up parks in one area (Ohio)? Doesn't make much sense since they're in competition for the same people. I do, however, see the logic behind the other parks in the deal, but PKI? Not much sense in competing with yourself.
russellvt 12 years ago
Ummm... Paramount Parks is a lot more widespread than that... they have parks all over the continent, including Viriginia, North Carolina, California and outside Toronto, Canada (just to name a few). Yes, PKI is close-by, but it's not any less of a park (in fact I'd rate it among Paramount's top parks).

Personally, I think it's a great win... particularly because I've been waiting a while to see PGA beat the snot out of the closest Six Flags park (SFMW); or, well, at least try... I'm hopeful this is the start of some "friendly" competition, here.
abbydonkrafts 12 years ago
As long as they don't trash King's Dominion, I'm all for it. I wonder how the character licensing will affect their profit margin.

I only wish our Six Flags Over Georgia could expand. They are trapped between a rock and a hard place (no open ground to buy). Heck, the most recent coaster had to extend over the parking lot. The whole place is losing its themed atmosphere, too.

I can't wait to get to the point where I can travel (income is still too limited). I've only rode all the coasters and taken a photograph from the top of the first hills at SFOG. :-(
eightdotthree 12 years ago
The only issue I have with this is that the Paramount parks were a good alternative and competitor to the Cedar Fair parks. They had their seperate styles and presentation. I hope they don't all run together now.
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