Cedar Fair LPNYSE: FUN

Cedar Fair and Six Flags complete their merger to create Six Flags Entertainment Corp. (FUN). Jenny Horne discusses what this merger means for park entertainment.

The merger, which was completed Monday, puts the estimated value of the company at $8 billion and "brings together the strengths of both companies, combining Cedar Fair's reputation for delivering exceptional guest experiences with Six Flags' innovative ride and attraction designs."

Six Flags Entertainment Corporation is now the "largest" theme park operator in North America following its merger with Cedar Fair Entertainment Company.

SANDUSKY, Ohio & ARLINGTON, Texas--(BUSINESS WIRE)--CEDAR FAIR AND SIX FLAGS ANNOUNCE THE SATISFACTION OF REGULATORY CONDITIONS FOR THE PROPOSED MERGER OF EQUALS.

Cedar Fair (FUN) and Six Flags (SIX) expect a merger to be complete by July 1st. The combined company will be named Six Flags Entertainment Corp. and will trade under the tickers “FUN” starting on July 2nd.

SANDUSKY, Ohio & ARLINGTON, Texas--(BUSINESS WIRE)--Cedar Fair, L.P. (NYSE: FUN) (“Cedar Fair”) and Six Flags Entertainment Corporation (NYSE: SIX) (“Six Flags”), today announced that they notified the New York Stock Exchange (“NYSE”) that the closing of Cedar Fair and Six Flags' previously announced merger of equals (the “Mergers”) is expected to occur on July 1, 2024 (the “Expected Closing Date”). The completion of the Mergers is subject to the satisfaction or waiver of a number of conditions.

Cedar Fair (FUN) witnessed a jump in share price last session on above-average trading volume. The latest trend in earnings estimate revisions for the stock suggests that there could be more strength down the road.

Six Flags and Cedar Fair are set to combine forces in a merger, with Six Flags shareholders holding 48.8% of the new company and Cedar Fair shareholders holding 51.2%. The merged company will have a track record of steady, moderate growth and solid profit margins. The merger is anticipated to bring about substantial benefits, such as $120 million in cost reductions and an additional $80 million in EBITDA from an enhanced product lineup.

Although the revenue and EPS for Cedar Fair, L.P. (FUN) give a sense of how its business performed in the quarter ended December 2023, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.