Cedar Fair Entertainment Company (NYSE:FUN) to acquire two iconic water parks and one resort in Texas – Schlitterbahn Waterpark and Resort New Braunfels and Schlitterbahn Waterpark Galveston for a cash purchase price of $261M.
The company expects the two Texas locations to achieve an Adjusted EBITDA margin in line with it’s standalone results as management implements a number of growth and operational initiatives at the parks over the next two years, reflecting an accretive EBITDA multiple post synergies.
In addition to the two Texas properties, the company has the right to acquire a third site in Kansas City for $6M.
The transaction is expected to close during 2Q19.
The Company intends to finance the transaction through additional long-term borrowings.
FUN +1.12% premarket.
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