As it looks right now, Apollo Management LP may acquire Cedar Fair for approximatley $700 million dollars. Cedar Fair owns 12 theme parks based in the United States and Canada. This includes parks like Cedar Point, Canada’s Wonderland, Kings Island, Carowinds, Valleyfair!, Dorney Park, Knotts Berry Farm, Kings Dominion, Michigan’s Adventure, Worlds of Fun, California’s Great Adventure, and Gilroy Gardens.
Cedar Fair currently holds almost $2 million in debt on their shoulders, which would be included with the purchase of the company. Cedar Fair’s profit is down from last year, bringing about $930 million in, which is almost a 7% fall. The park will face many debt obligations in the near future (looks like they’ll be facing the creditors soon!) and could possibly sell two of their parks to pay off debts.
It looks as if this is a hostile take over by Apollo Management LP to help relieve some of the debt from the company and put it into other hands. Is this a hostile takeover or a sale of the company? You decide.