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Sea World and Busch Gardens have a new owner.

http://www.orlandosentinel.com/business/orl-seaworld-orlando-sold-100709,0,1554695.story

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After months of negotiations, Anheuser-Busch InBev announced this morning that it will sell SeaWorld Orlando-owner Busch Entertainment Corp. to the Blackstone Group for as much as $2.7 billion.

Blackstone, the New York-based private-equity giant, will pay AB InBev $2.3 billion in cash plus give the beer brewer a right to participate in its return on investment up to $400 million.

The deal has sweeping implications both for Orlando and the global tourism industry.

Orlando-based Busch Entertainment is the second-busiest theme-park operator in the United States, with a chain of 10 theme parks that stretches from Pennsylvania to California and draws roughly 25 million visitors a year. It has approximately 10,000 employees in Central Florida alone, where its properties include SeaWorld, Aquatica and Discovery Cove.

Blackstone, meanwhile, already holds a 50 percent stake in Orlando's No. 2 theme-park resort -- and fierce SeaWorld competitor -- Universal Orlando. The buyout firm also owns Merlin Entertainments Group, the British amusement-park operator with properties such as Legoland theme parks and Madame Tussauds Wax Museums.

Blackstone is expected to retain Busch Entertainment's management and operate the company as a standalone investment.

"Blackstone sees tremendous opportunity for investing in leading businesses within the media and entertainment industries, where we have significant expertise," Michael Chae, a senior managing director at Blackstone, said in a prepared statement."We are delighted to be investing in a company with such iconic brands, irreplaceable assets and strong growth prospects. We look forward to working with BEC management in continuing a legacy of delivering world-class family entertainment to our customers."

A-B InBev had been seeking a buyer for its theme parks since completing the $52 billion merger of beer giants InBev and Aheuser-Busch last year. Executives have said they want to sell of non-core assets to use the proceeds to pay down debt stemming from the merger.

"Busch Entertainment Corporation is a high-performing asset with a world-class management team, but not a core business for Anheuser-Busch InBev," A-B InBev's Carlos Brito said in a written statement. "We are pleased to have reached an agreement with a buyer who understands the industry and has a strategic vision for the business. The sale of BEC represents another important milestone in our commitment to de-leverage the company and will also allow us to continue to focus on our core brewing business."

Busch Entertainment President Jim Atchison was to address employees at the company's Orlando headquarters moments after the sale was announced.

"This transaction represents an exciting new chapter for BEC and the thousands of dedicated employees of our team," Atchison said in a written statement. "Blackstone understands our parks are built on an unwavering commitment to quality and a focus on the guest experience. Blackstone is uniquely experienced to help us take the company to new heights, and I look forward to working together to grow this great business."

The sale of Busch parks has been closely watched in financial circles. It is the largest private-equity buyout so far this year.

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Let's see if they can keep up the quality that these parks have been known for.
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On September 21, 2007, a historic 119-year old amusement park had been secretly murdered. Never forget it.

This just in from Orlando-

Immediately following today’s announcement of the acquisition of Busch Entertainment Corp. by the Blackstone Group, Blackstone marketing director Michael Chae informed the media that they would be closing the Busch Gardens Williamsburg, Virginia property.

“In a bold and exciting move, Blackstone’s first corporate decision as owner of the Busch theme parks is to close the Williamsburg property. With increased competition from Kings Dominion in nearby scenic Doswell, Busch Gardens Williamsburg is considered by Blackstone to be a liability and therefore will be closed effective immediately” Chae proclaimed. He added “The rides and equipment will be put up for auction at a yet to be determined time and the land will be rezoned for commercial and residential use. The Williamsburg area needs more condominiums along the waterfront and that is exactly what Blackstone intends to do. The property will still be named Busch Gardens to respect the park’s rich history, however people will now be able to enjoy it in a new and exciting way!”

Some of the park’s famous roller coasters such as Griffon, Alpengeist and Apollo’s Chariot will find new homes at Blackstone parks overseas, however the fate of the historic Loch Ness Monster roller coaster has yet to be determined. When asked about the ride’s future, Michael Chae responded “Nessie is a very special ride and deserves a good home.”

Contracts were signed for demolition of the park in mid-July and actual in-park demolition was slated to begin on Monday October 5, 2 days prior to the announcement of the park’s closure. Some of the park’s award-winning restaurants will remain on-site however as part of the new residential community. “Hey, they have to eat, right?” Chae joked.
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http://rayp.smugmug.com

Quote:

Perhaps the most noticeable change: Budweiser's iconic Clydesdale horses will be removed from SeaWorld and Busch Gardens parks. Atchison said the horses will remain a part of Anheuser-Busch's beer-marketing division. Some Anheuser-Busch signage will also likely be taken down in the coming weeks.

How sad, no more Clydesdale horses at the park. I wonder what will become of Scotland now that the pasture will be empty.
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Confidentiality is telling one person at a time.

Don't let anyone steal the cheese from your sandwich!

In an unprecedented move Cedar Fair has just purchased Blackstone Group for an estimated 4.6 million. When questioned about this purchase CEO Dick Kinzel said, hey everybody loves new rides. Cedar Fair will be closing many of the parks in order to remove rides from the Busch parks and send them to Cedar Fair parks. Kinzel also went on to comment that many current Cedar Fair parks will be installing "new" rides next season.
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GL's demise was caused by one mans foolish greed.

In the end the truth will come out as it always does.

Ray and Coasterdad, I almost choked on my dinner when I read your posts. Great stuff, as always, from you guys.
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On September 21, 2007, a historic 119-year old amusement park had been secretly murdered. Never forget it.

Sometimes funny things do come true. This was on the Yahoo message boards for the Cedar Fair stock, which is hovering a cent above $10.00.
Everyone should read those boards, its always good for a laugh.

"Maybe Blackstone should hire Kinzel and his lieutenants to run the Inbev parks"

One of the bloggers responded:

As utterly insane as that sounds, Kinzel apparently had such delusions of grandeur. Recall his comment during a conference call in August 2008....

In response to a question on the Busch parks, Dick basically said what I've been saying all along ("we shot our wad on these damn Paramount parks & have nothing left to go after any fairly-priced, profitable properties"), but then he added this whopper: "...but if someone needed a management company to come in there and manage those parks for them, we would certainly welcome that opportunity..."

Yes, I can see it now. QUICK -- send them your resume showing how you manage new parks! I can help with some relevant info to secure the job:

Geauga Lake: purchased 2004. OPERATING losses $8M-$10M+ per year. Attendance down >50% by YE 2005. $26M project didn't raise attendance at all. Historic 119 year old park closed 3 1/2 years after purchase. Historic coaster to be destroyed.

Paramount Parks: purchased 2006. Attendance down 20%+ by YE 2007. 5 parks now losing $57M per year (after "synergies".) Cash flow drain $40M+ per year. Unit price down >30% since purchase & debt covenants may cost unitholders their yield (the only thing keeping units above $2.)

Hey InBev, hire Dick for the management job! With such an outstanding record, how could you lose? LOL!!!! Well, at least once Kinzel is finally forced out of his CEO job, he has a fallback position: stand-up comedian!
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GL's demise was caused by one mans foolish greed.

In the end the truth will come out as it always does.

I thought the former Paramount Parks were doing fine...

Well, you know what I mean. Fine knowing the economy's shape.

hookyboysb wrote:

I thought the former Paramount Parks were doing fine...

Doing fine is a relative statement. The owners of the park now would never say how bad its doing. We have all been lied to folks - unfortunately no one will believe it because CF does such a good spin job on their numbers.
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GL's demise was caused by one mans foolish greed.

In the end the truth will come out as it always does.

Shamu is a very special whale. He deserves a proper home.
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"It's a very special ride. We want to make sure it has a proper home." Cedar Fair Spokesman Innes on Big Dipper, 12th oldest roller coaster on Earth.

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