2024-04-10 01:01:28 ET
Summary
- Six Flags and Cedar Fair are planning to merge, with Six Flags shareholders owning 48.8% of the new company and Cedar Fair shareholders owning 51.2%.
- The combined entity will have a history of constant modest growth with strong margins.
- The merger is expected to result in significant synergies, including $120 million in cost savings and $80 million in incremental EBITDA from an elevated offering.
- The synergies provide great upside for investors if achieved, with my DCF model estimating good upside for both stocks.
Six Flags ( SIX ) operates theme parks and water parks in the United States, Mexico, and Canada. The company is looking to merge with Cedar Fair ( FUN ), an amusement park, water park, and hotel operator. In the proposed merger, looking to be completed within the first half of 2024, Six Flags’ shareholders look to own around 48.8% of the new company, HoldCo, with Cedar Fair’s shareholders owning 51.2% of the new company. The new company will be named Six Flags, but will take Cedar Fair’s ticker....
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Six Flags And Cedar Fair: Synergies Provide Great Upside