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Cedar Fair Acquires Two Texas Water Parks & Land in Kansas City from Schlitterbahn

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This is a smart move by Cedar Fair.  They get into the Texas market by acquiring two of the largest water parks in Texas that also have hotels.  In Kansas City, they eliminate a competitor to Worlds of Fun/Oceans of Fun and get a large chunk of land to develop a possible sports complex.




Cedar Fair Signs Definitive Agreement to Acquire Two Iconic Texas Water Parks From Schlitterbahn
June 13, 2019

  • Company agrees to acquire Schlitterbahn Waterparks and Resorts in New Braunfels, Texas, and Galveston, Texas, along with the right to acquire an additional property in Kansas City, Kansas, for future development
  • Advances strategy to leverage the Company’s management expertise, increase presence in growing and attractive markets and further diversify portfolio


SANDUSKY, Ohio--(BUSINESS WIRE)-- Cedar Fair Entertainment Company (NYSE: FUN), a leader in regional amusement parks, water parks and immersive entertainment, today announced that it has signed a definitive agreement to acquire two iconic water parks and one resort in Texas – Schlitterbahn Waterpark and Resort New Braunfels and Schlitterbahn Waterpark Galveston for a cash purchase price of $261 million, subject to certain working capital adjustments related to the timing of the closing. Additionally, Cedar Fair has the right to acquire a property located in Kansas City, Kansas, for a cash purchase price of $6 million.


“We are very excited about the opportunity to bring these two award-winning Texas water parks into the Cedar Fair family,” said Richard Zimmerman, Cedar Fair’s president and CEO. “These properties represent new markets for us with attractive demographics in the growing Central Texas region, and they align with our strategy to identify compelling opportunities to accelerate our growth and profitability. The investments we have made over the past five years to strengthen our back-of-house and customer-facing systems will support a smooth integration of these properties by ensuring a premium guest experience, strong team collaboration and superior execution.”


Zimmerman continued, “Schlitterbahn employees are known throughout the industry for their innovation and dedication to the quality of the guest experience. Because of their work, the water park located in New Braunfels has been recognized as the ‘Best Water Park in the World’ for 21 straight years, and Galveston has received recognition as the ‘Best Indoor Water Park in the World’ for a decade. We look forward to adding these parks to Cedar Fair’s industry-leading portfolio of regional entertainment resorts.”


In 2018, Cedar Fair entertained 25.9 million guests, reported $1.35 billion in annual net revenues and generated Adjusted EBITDA1 of $468 million (35% Adjusted EBITDA margin1). The two Texas water parks and the resort entertained 1.2 million guests in 2018 and generated annual revenues of approximately $68 million. Cedar Fair expects the two Texas locations to achieve an Adjusted EBITDA margin in line with Cedar Fair’s standalone results as management implements a number of growth and operational initiatives at the parks over the next two years, reflecting an accretive EBITDA multiple post synergies. Following this transaction, Cedar Fair’s portfolio will consist of 15 parks, resort accommodations totaling more than 2,000 rooms across six parks, more than 600 luxury RV sites across four parks, and two marinas.


In addition to the two Texas properties, Cedar Fair has the right to acquire a third site, located on approximately 40 acres in Kansas City, Kansas, which previously operated as a Schlitterbahn water park, for a cash purchase price of $6 million.


The transaction is subject to regulatory approval and other customary terms and conditions, and is expected to close during the second quarter of 2019 subject to those approvals and conditions. The Company intends to finance the transaction through additional long-term borrowings.


Perella Weinberg Partners is serving as financial advisor to Cedar Fair, and Squire Patton Boggs is providing legal counsel.


Edited by Medusa42
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I'll be interested to see if Cedar Fair removes or changes some of the more extreme rapids type rides or leave them as is.

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It looked like Kansas City was on the table. Since World's of Fun already has a water park (and maybe some residual negatives of that property), it would make more sense to sell it to developers, as it looks like a lot of stuff is coming in. You could easily fit a few hotel there (as it is right off I-435).


P.S. the Shlitterbahn site is also across the street from a Great Wolf Lodge, but this is still 30mins away from World's of Fun on the Missouri side.

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4 hours ago, Yoshi said:

I'll be interested to see if Cedar Fair removes or changes some of the more extreme rapids type rides or leave them as is.

Yeah, they will have to be careful about what they remove or the parks will lose their appeal to the locals. 


I noticed in some of the articles that Schlitterbahn South Padre Island will be rebranded and will continue to be owned by a member of the Henry family.  This makes me think Cedar Fair is keeping the Schlitterbahn name and brand on the two Texas parks.  The Corpus Christi resort which is owned by IBC Bank has already rebranded as Waves Resort Corpus Christi featuring Schlitterbahn water park.  It wouldn't be too hard to change the name of the water park on that resort.

Edited by Medusa42
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On 6/13/2019 at 7:58 PM, 29yrswithaGApass said:

I wonder if Six Flags knew about this and made any type of offer.  

From the comments during the EPR Properties Q1 2019 earnings call, it sounds like multiple offers were made.  I would be shocked if Six Flags didn’t make a bid and I think Cedar Fair was willing to pay more because they desperately needed to get into Texas.


Brian Hawthorne -- RBC Capital Markets -- Analyst

So I guess, first question on Schlitterbahn, is that payoff contingent on not getting the deal done? And if they don't, do they have an alternative way to pay back?

Greg Silvers -- President & Chief Executive Officer

Again, what we can tell you, Brian, is they've expressed a very high degree of confidence that they've got multiple alternatives to deal with this. We've talked to several of those. So we have a high degree of confidence that it will get executed.



Screamscape and many other people don’t seem to understand that Schlitterbahn is selling these parks so they can pay back the loan with EPR Properties.  $190 million of the $261 million purchase price goes to EPR Properties and EPR will not have any further involvement with the Schlitterbahn Kansas City property or any other Schlitterbahn properties.


I am curious if the city of New Braunfels would consider selling the 122 acre Landa Park Golf Course to Cedar Fair in the future.  That is enough land to build a decent amusement park.


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  • 2 weeks later...



Cedar Fair Completes Issuance of $500 Million Senior Unsecured Notes


June 27, 2019



Cedar Fair, L.P. (FUN) (the "Company" or "Cedar Fair") today announced that it, together with its wholly owned subsidiaries Magnum Management Corporation (“Magnum”), Canada’s Wonderland Company (“Cedar Canada”) and Millennium Operations LLC (“Millennium” and, together with Magnum and Cedar Canada, the “Co-Issuers”), has completed the issuance of its previously announced private offering of $500 million aggregate principal amount of 5.250% senior unsecured notes due 2029 (the “Notes”). Obligations under the Notes are guaranteed by the Company’s wholly owned subsidiaries that guarantee its senior secured credit facilities (other than the Co-Issuers).


The Company intends to use the net proceeds of the offering for the proposed acquisition of Schlitterbahn Waterpark and Resort New Braunfels and Schlitterbahn Waterpark Galveston, the purchase of the land upon which California’s Great America amusement park is located, the payment of fees and expenses related to those transactions and the offering and for general corporate purposes and repayment of a portion of the Company’s senior secured revolving credit facility.


The Notes were offered only to persons reasonably believed to be qualified institutional buyers under Rule 144A of the Securities Act of 1933, as amended (the “Securities Act”), and to certain non-U.S. persons in transactions outside the United States under Regulation S of the Securities Act. The Notes have not been registered under the Securities Act, and, the Notes may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and other applicable securities laws.


This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Notes, in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.


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Cedar Fair completed the deal for the Texas parks today.



SANDUSKY, Ohio--(BUSINESS WIRE)-- Cedar Fair Entertainment Company (NYSE: FUN), a leader in regional amusement parks, water parks and immersive entertainment, announced today it has completed the acquisition of two iconic water parks and one resort in Texas – Schlitterbahn Waterpark and Resort New Braunfels and Schlitterbahn Waterpark Galveston – for a cash purchase price of $261 million. The acquisition advances Cedar Fair’s strategy to increase its presence in growing and attractive markets, further diversifying its portfolio of parks and leveraging its management expertise.


“Starting today, Cedar Fair is officially Texas proud,” said President and CEO Richard Zimmerman. “The completion of this acquisition is great news, and we are extremely pleased to be adding to our portfolio of entertainment properties two of the nation’s most treasured and award-winning water parks. For the employees and guests of those parks, I want to extend a warm welcome to the Cedar Fair family.


“Our company, whose heritage at Cedar Point in Sandusky, Ohio, dates back to 1870, has a rich history of acquiring and investing in strong regional brands in attractive markets,” continued Zimmerman. “The quality of the Schlitterbahn brand and the offerings of these parks are consistent with that strategy. Our plans are to update and refresh areas of both parks, yet retain the valued hospitality and genuine spirit of the Schlitterbahn brand that guests have come to appreciate over the years.”


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