Geauga Lake Today Forums - View topic - Cedar Fair Seeks Buyout That Would Retain Current Management - THE place to chat about The Lake and much much more! - Free Message Board Hosting by FreePowerBoards.com

-- July 9, 2007 -- Cedar Fair Entertainment Co., the nation's third-largest theme-park operator, has quietly reached out to private equity firms to gauge their interest in a buyout on the condition that the company's management team remains in place, The Post has learned.
According to two sources close to the situation, Cedar Fair has tapped Bear Stearns to conduct a small, highly targeted auction for the company.
A spokeswoman for Cedar Fair declined to comment and calls to bankers at Bear Stearns were not returned.
Among those contacted by Bear Stearns are Apollo Management and Thomas H. Lee Partners. Bear also reached out to a potential European suitor, according to one source.
Others include Providence Equity Partners, Texas Pacific Group and the Carlyle Group - all of which either reviewed or were actively involved in the recent auctions for Six Flags and Paramount Parks - as well as the Blackstone Group, which owns Merlin Entertainment Group, home to Legolands parks and most recently, Madame Tussauds wax museums.
So far, however, interest among the buyer pool has been tepid, according to one source.
The problem is the ticket to ride won't come cheap, sources said. The company, which has a market capitalization of $1.5 billion and $1.8 billion in debt, is projected to generate about $330 million in cash flow this year. A 10 times cash-flow multiple typical of theme-park deals would equate to a price tag of $3.3 billion, and an 11 times multiple to just under $4 billion.
Sandusky, Ohio-based Cedar Fair owns 12 amusement parks, six water parks and six hotels, including Knott's Berry Farm in California and Star Trek: The Experience in Las Vegas. Only Disney and Six Flags are bigger players in the theme-park world.
Cedar Fair essentially doubled its size when it beat out many of the same private equity firms it is now courting to acquire Paramount Parks from CBS in a $1.24 billion cash deal last year.
That deal - in which Bear Stearns also served as financial adviser - appears to have re-energized Cedar Fair CEO Richard Kinzel, 66, who has signed a new contract to stay at the controls until 2012. His $1.2 million annual salary includes financial incentives related to the company's performance.
Kinzel's desire to remain on board after a sale is no doubt fueled in part by the wave of leveraged buyouts with terms that not only kept managers in place but signed them to lucrative contracts with equity stakes.
Cedar Fair stock rose 30 cents Friday to $28.84 in New York Stock Exchange composite trading. The shares are up 19 percent during the year-earlier period.

peter.lauria@nypost.com --

New York Post

http://www.nypost.com/seven/07092007/business/ticket_to_ride_business_peter_lauria.htm
_________________
www.ipetitions.com/petition/geaugalake

Top 10 Coasters: 1.) El Toro 2.) Maverick 3.) Millennium Force 4.) Goliath ~ SFoG 5.) X 5.) Raptor 6.) Deja Vu 7.) Scream! 8.) Tatsu 9.) Top Thrill Dragster 10.) Sheikra
-- Thrills Around the Corner!

this is very interesting im not sure what to make of this quite yet.
_________________

NO! KINZEL LEAVE! THIS IS JUST WHAT THE CHAIN NEEDS!
_________________
"Despite low attendence at Cedar Point Amusement Park, CEO Dick Kinzel decicded to close down its sister park, Geauga Lake, in hopes for more attenence."

Why do you think he would leave, he makes $1.2 million a year! That guy must have so much money!

It depends on how the sale goes. Also, i'm sure the retirment checks are able to rival his current salary.

Oh god I wish I was him Razz

Soooooo, what do we have here? You get yourself in major debt by purchasing the Paramount Parks and now you want to sell the entire company. What kind of crap is that?

For once I would like to see a European company take a gamble just to see how they would fare in the American theme park industry. At least a few of the European park companies have an inkling in theming.

Don't count on Blackstone - they just bought the Legoland parks as well as the Tussaud's parks (Alton Towers, Thorpe Park).

This is Kinzel's chance to get out while the getting is good.
_________________
On September 21, 2007, a historic 119-year old amusement park had been secretly murdered. Never forget it.

This is all very interesting and I am taking it a bit slow at first.

How bad are things really over at CF central that The Dick would actually entertain something like this? How long do you think he has known? Motley Fool says that they overdid it by buying the Paramount chain.

http://www.fool.com/investing/dividends-income/2007/07/09/ride-over-at-cedar-fair.aspx

This is not something you just come out of the blue and decide. Maybe if we all go back and watch his video interviews his body language might tell the story. I don't really know that this is good news for good old GL. Why would someone want an "under performing park" (note the quotes). I think if (and I said if) the park does get sold GL will not be high on their list to keep in operation.

God I hope I am wrong on this one.

to tell you the truth i do see geauga lake being sold maybe but i dont think it would be closed. at least i hope it wont be.
_________________

I sort of hope that it gets sold to a chain that would want to compeat with cedar point. that would mean thay would want to build up the park but not as fast as six flags did

I for one am glad about the news. Hopefully a new company buys Geauga Lake away from Cedar Point and has it as its own seperate park. Bring back the Haunt!

i think geauga lake will be left out and they will sell off parks like carowinds and great america
_________________

The biggest mistake Cedar Fair made was buying all those Paramount Parks. Right away Cedar Fair took a great coaster from Geauga Lake and put it at Kings Island. What Cedar Fair should do is sell off all the Paramount Parks because those are worth the money. Mistake 2 was treating Geauga Lake like the red headed step child and removing all the rides from the park. Gee I can't understand why attendance is decreasing? Who is running Cedar Fair right now? Mr Burns and Smithers? The best idea I heard so far was keeping the management intact. Bill Spehn should definetly stay at Geauga Lake and run it how he sees fit.

I wish Six Flags would have never sold GL. I happened to like the competition with Cedar Point we were at 10 coasters and they were at like 13, we are too far behind now thanks to Cedar Fair but who knows if this is good or bad...maybe Busch will return to the area! lol...yeah right!

im wishing the same thing as you CaptainLucky4D (itll never happen lol)
_________________

Page generation time: 3.5327s (PHP: 100% - SQL: 0%) - SQL queries: 19 - - Debug on

Park Maps | Rides & Attractions | Links | Parkitechure | Time Machine | About