Cedar Fair and Six Flags Entertainment Corp. have agreed to join forces as a combined company valued at around $8 billion.
The companies on Thursday announced they had agreed to a merger of equals. Both boards unanimously approved the merger.
The combined company will operate under the Six Flags name, trading under the NYSE ticker symbol FUN. Its headquarters will be in Charlotte, with finance and administrative operations in Sandusky, Ohio.
Pending regulatory approvals, the merger is expected to close in the first half of 2024.
The combined company will operate 27 amusement parks, 15 waterparks and nine resorts in the U.S., Canada and Mexico. In the past year, Six Flags and Cedar Fair welcomed 48 million guests.
The new company's portfolio of intellectual property will include Looney Tunes, DC Comics and Peanuts.
The companies said their market overlap is currently "minimal" and that the merger will give it a more balanced footprint in year-round operating climates.
After the merger, the company will use one operating platform, which is expected to create efficiencies.
"By combining our operational models and technology platforms, we expect to accelerate our transformation activities and unlock new potential for our parks," Six Flags CEO Selim Bassoul said in a release.
Synergies are expected to save around $200 million annually post-merger, thanks to administrative and operational savings and generation of additional revenue.
An anticipated rise in cash flow will give the company flexibility to invest in new attractions and other offerings.
"Our merger with Six Flags will bring together two of North America's iconic amusement park companies to establish a highly diversified footprint and a more robust operating model to enhance park offerings and performance," Cedar Fair CEO Richard Zimmerman said in a release. "Together, we will have an expanded and complementary portfolio of attractive assets and intellectual property to deliver engaging entertainment experiences for guests."
Zimmerman will be CEO of the combined company, while Bassoul will serve as executive chairman of its board of directors. Cedar Fair CFO Brian Witherow will be CFO of the combined company, while Six Flags CFO Gary Mick will be chief integration officer. Its 12-seat board will be populated equally by Six Flags and Cedar Fair board members.