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Cedar Fair Selling the park?


Karen
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I often search the net for interesting articules and came across one from a newspaper near the Cedar Fair located in Northern Ohio. The article mentioned that Cedar Fair was looking for a private buyer for the park that would keep current management in place. I have been hearing that Mr. Kinzel was looking to retire in the near future and handing the reigns over to his buddy Mr. Falfus. So I am wondering what is going on and if anyone else has heard anything of this nature??

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There are actually several different rumors. Only a few include; they were selling a park to the 49'ers, selling all of Cedar Fair, and a few talking about selling some of the parks.

I did see on their "official" site that they denied all rumors but then a lot of companies do that prior to selling to protect their stock. This is not to say that any of them are true - just wondering what others had heard.

Taking into consideration that a rumor is just that until evidence to the contrary so please keep in mind that all I want to know here is what others had heard and nothing more.

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Most of these have been floating around for a bit (the 49ers thing since last Winter; and the private equity rumor since last Summer). Both of which already have pretty extensive discussion threads on this site.

I still think there's some truth to CF exploring the private equity waters last Summer--even if they did deny it later (and even if the story broke in the NY Daily News--or was it the Sun?). I think they floated the idea, but quickly realized that there would be few takers (and even fewer that would be willing to keep on Kinzel & crew)

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Right now is a bad time for the amusment park business just take a look at how much new rides are being built. Rides don't seem to be earth shattering anymore. In the 80's and 90's it seemed like every year there would be something some where that is just remarkable. Now many seasonal parks are having rough times getting people to spend money in the park so they look to for cheaper ideas suchs as sprucing up the area (which is always needed) cheaper rides just as flat rides, small compact coasters like invertago, the days of a new mega record breaking coaster almost every year are done with for now. It will take some time for the economy to get back on its feet but in another year or two I think things will be looking better for the entire country.

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The sale of amusement parks has gone South, just look at what CF was able to buy GL for from SF compared to what SF had invested in to that park. Right now most parks either sell to land developers or at a huge loss. Not to mention that CF would not sell parks that generate revenue. As in CP and KI.
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Huh? If that European company would pay enough for Kings Island so that Cedar Fair could buy Busch Gardens and every other former Paramount Park (which it would not), then why wouldn't that same European Company pass on that deal and just buy the Busch parks and keep the change for future investment? Just because Cedar Fair arguably way overpaid for the Paramount Parks mostly to get Kings Island doesn't mean anyone else would....especially now...times are very different.

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Sometimes I am a bit sloooow.....

Terpy, not known for pulling fast ones...

Yeah, but normally something like that would be all over the board.

If it were a local article around Sandusky, I would even think that Lake would post it.

It's just odd that no one else mentioned seeing the article.

Just odd, odd, odd.

Makes one go .... Hmmmmmmm.

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I believe that it may be this story, from July 2007, that is being referred to.:

http://www.sanduskyregister.com/articles/2...ront/356895.txt

The Post reported Cedar Fair had entered into "quick-moving talks" with Destiny Capital Solutions about a $4.1 billion deal.

Almost a year later? Not exactly "quick moving". ;)

We saw the type of investing that Paramount did when they had the parks for sale. But now with CF, we see the complete opposite if the rumor is/was true.

It appears that this story was a bit mis-leading written by an overvealous writer (in the media, whoa thunk it? ;) ):

Kinzel responded to the Post story in a news release.

"Of course, the board continuously challenges management to find the best strategic alternatives available to increase value to our unitholders, and I do receive inquiries from time to time about a particular park or group of parks, whether it is to sell or to even buy additional parks. Consistent with our policy, I do not intend to comment on any of these discussions on an ongoing basis."

Just because the 2 compaines talked, does not mean CF is on the market. From the business side, CF would be fools not to listen. But, just listening, means nothing.

Hey Interp, I am surprised that you would miss posting an article about KI being sold.

I figured that if there was an article out there that you would have found that?

Maybe Karen is just imagining it?

Intrestingly enough, Interp did post the information.

It was just when the article was actually written.

http://www.KICentral.com/forums/index.php?showtopic=10089

;)

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^ Not to be a pain guys, but I said back on post #6 & #10 that this was just a rehash of year-old information. (I even posted the link to the old KIC thread...) Did I check that "make everyone automatically skip your post" checkbox? ;)

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  • 2 months later...
  • 7 years later...
  • 2 weeks later...
  • 2 weeks later...

These days, as even then, the primary question should have an s added to it. Make no mistake about it, if a credible private equity firm comes in with a credible but overly generous offer, the management and unitholders will almost certainly sell. And the buyers will also likely either own or also be buying the other major US seasonal park operator--and will merge the ownership and management of the two.

It's not a question of if, but rather when. The longer the current volatility and uncertainty in the finacial markets continues, the longer SIX and FUN have to fix up their financial houses. Instead of paying down debt, both companies are paying out huge dividends or buying back stock.

When, not if, interest rates and gas prices go back up, the huge debt at both companies will become a huge midterm concern. Worry focuses the mind. And a sale looks better and better, but not to such a ravaging opportunist as Apollo Global--and Dick Kinzel is, thankfully, gone. As is his GM son.

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