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Published by:
IBS Research Center (2007)
Length:
22 pages
Data source:
Published sources

Abstract

Amidst the growing global amusement park industry, the US industry had a great role to play. Cedar Fair Leisure Park, one of the key players of the US amusement park industry acquired Paramount Parks, a subsidiary of CBS Corporation in June 2006 for $1.24 billion in cash. The acquisition was expected to increase the geographical diversity and attain cash flow synergy of $20 - $30 million over the next 3-5 years. The combined entity of Cedar Fair-Paramount Parks was expected to attract attendance of 25 million and generate revenues of $1 billion by 2008-2009. In order to finance the acquisition, repay earlier debt and pay shareholder dividends, Cedar Fair planned to raise debt of $2 billion. As Cedar Fair already faced debt burden, financing the acquisition through debt was a concern. The case discusses the expected benefits and opportunities of acquisition and highlights the financial and product integration challenges of Cedar Fair.

Topics

Cedar Fair LP (Leisure Park); Paramount Parks; Amusement park industry; Theme parks; Acquisition; Product line integration; Cashflow synergy; Market share; Attendance; Dividend; Revenue; Walt Disney; Six Flags Inc; Public offering; Interest expenses
Location:
Industry:
Size:
Revenue USD568.71 million (2005)
Other setting(s):
1893-2006

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