Jump to content

BUSCH PARKS: BLACKSTONE, now what?


Recommended Posts

Rumors of a potential sale of SeaWorld Orlando owner Busch Entertainment Corp. were rekindled this week by news that Merlin Entertainments Group, long thought to be a potential Busch suitor, is preparing to go public.

Merlin, whose holdings include Legoland theme parks, Madame Tussauds wax museums and the London Eye, is close to finalizing a plan for an initial public offering on the London Stock Exchange, according to a report last weekend in The Independent of London.

The offering is expected to raise more than $3 billion, the newspaper reported. Merlin is owned by a private-equity giant, the Blackstone Group, which also holds a 50 percent stake in Universal Orlando....

http://www.orlandosentinel.com/business/or...,0,502673.story

Link to comment
Share on other sites

I think this getting serious now. I have some friends working at Seaworld and they are talking about it. It takes something major for them to be talking about the parks.

That is certainly the rumor. We were due to have our monthly Communications Meeting today actually, it was suddently postponed with no new date announced. It has raised eye brows that something is definitely in the works. Mix that in with Blackstone officials touring the parks, being in Orlando and Tampa quite frequently over the past few weeks. It'll be interesting to watch things unfold in what would seem to be the very near future.

Link to comment
Share on other sites

  • 3 weeks later...
There is also concern that a new owner won't invest in the community like Anheuser-Busch has done over the years. During Jamestown 2007, the company contributed $2.25 million to the event. It is also a major contributor to the the region's joint marketing program.

Board of Supervisors Chairman Jim Kennedy said that if the park is sold, the new owners should remain community partners.

Anyone want to guess the over/ under that a new owner will not donate nearly as much.

I think it is rather funny that their is "concern" that a new owner won't invest as much into the community. Do they actually expect a new owner to spend a ton of money on the purchase of the park, and then donate money like AB did?

They really need to plan for the worst, and hope for the best.

Link to comment
Share on other sites

Blackstone Group LP, the world’s largest private-equity firm, may buy the amusement-park business of Anheuser-Busch InBev NV for about $2.5 billion to $3 billion, according to a person familiar with the discussions.

An agreement may come as soon as next week, said the person, who asked not to be identified because the talks are private. The negotiations may not result in a transaction, the person said. Representatives of Blackstone and InBev declined to comment.

InBev, the world’s largest brewer, inherited the SeaWorld and Busch Gardens amusement parks as part of its $52 billion merger with Anheuser-Busch last year. The company has since cut jobs, culled marketing budgets and sold assets to pay down debt....

http://www.bloomberg.com/apps/news?pid=206...id=a8cifvkwJqZI

Link to comment
Share on other sites

Blackstone was my bet when CBS was selling the Paramount Parks...of course, that didn't quite work out the way I thought it would. (I still think that they were one of the final bidders for Paramount Parks...which drove up the final price for CF.)

Link to comment
Share on other sites

...For the independent Anheuser-Busch, theme parks represented one part marketing device and one part decent-profit business. Ever since the takeover, the park business has been barely mentioned in Anheuser-Busch InBev's communications, and the company doesn't provide separate financial data on it.

The last detailed look was a 2008 third-quarter 10-Q filing from the still-independent St. Louis brewer. For nine months, theme parks produced revenue of $1.14 billion, with an operating profit margin of nearly 24%....

http://www.fool.com/investing/internationa...ped-by-bud.aspx

See also:

...Short of Disney (NYSE: DIS), there really isn't a viable buyer outside Blackstone, and Disney is busy paying $4 billion for Marvel Entertainment (NYSE: MVL). Regional-park operator Six Flags is shuffling through bankruptcy reorganization, and Cedar Fair (NYSE: FUN) is still having trouble digesting its 2006 Paramount Parks acquisition. Blackstone seems to be the inevitable, and logical, home for Shamu....

http://www.fool.com/investing/general/2009...l-throttle.aspx

Link to comment
Share on other sites

Just heard from a friend that this could all be done tomorrow.

To be perfectly honest, I wish people would stop speculating that its going to happen this day and then this day and then this day. The media is getting quite annoying as every morning when I drive into work their vans are bombarding the entrances to the Parks. Of course the day of our monthly Communication meeting, which people just assumed was going to be something huge, they had numerous helicopters flying over SWO, AQ and DC. Really. Ugh. It'll be announced when there is something there is something ready to be announced.

- Todd

Link to comment
Share on other sites

From that article:

...Perhaps the most noticeable change: Budweiser's iconic Clydesdale horses will be removed from SeaWorld and Busch Gardens parks. Atchison said the horses will remain a part of Anheuser-Busch's beer-marketing division. Some Anheuser-Busch signage will also likely be taken down n the coming weeks.

But beyond that, "I don't think guests will see a change," Atchison said. "There's going to be a lot of continuity."...

Link to comment
Share on other sites

No...they are part owners of some parks you have heard of...the Universal parks, which is co-owned with General Electric (and Vivendi) , and own Merlin Entertainment, which operates Alton Towers Resort, the London Eye ferris wheel, Madame Tussauds wax museums, Sea Life centers, and Legoland. Importantly, at least for now, Busch Entertainment will NOT be consolidated with these other interests, but operated as a standalone unit.

Link to comment
Share on other sites

I agree, it's good to see a group with park experience purchase the chain. Out of their current investments I've only been to Universal/IOA, but what a great place that is. I'm sure they'll do right by the parks.

Two quotes from the Orlando Sentinel article I found interesting (emphasis added by me):

Blackstone will retain Busch Entertainment's management and operate the company as a standalone investment.

"This is a big thing for Orlando, not just BEC," Atchison said. He added that no jobs will be cut as part of the transaction.

Yet another positive sign if you ask me! The two Busch parks I've been to in my adult life (Tampa & Sesame Place - I'm not counting Sea World since I haven't been there since the mid-80's) are good parks, and I wish the best for the chain.

Link to comment
Share on other sites

Man I really hope this new company BlackStone doesn't mess up Busch's nice theme parks, and Sea World's.

They aren't new to the amusement park business. Quoting Terpy...

No...they are part owners of some parks you have heard of...the Universal parks, which is co-owned with General Electric (and Vivendi) , and own Merlin Entertainment, which operates Alton Towers Resort, the London Eye Ferris wheel, Madame Tussauds wax museums, Sea Life centers, and Legoland. Importantly, at least for now, Busch Entertainment will NOT be consolidated with these other interests, but operated as a standalone unit.
Link to comment
Share on other sites

IF such a contract exists/existed, it doubtless would continue under new ownership. Perhaps this is a good place to point out the Blackstone deal isn't even supposed to close until some time early next year...

I can't believe you passed on the opportunity to respond with just a yes!

:lol:

Link to comment
Share on other sites

IF such a contract exists/existed, it doubtless would continue under new ownership. Perhaps this is a good place to point out the Blackstone deal isn't even supposed to close until some time early next year...

I can't believe you passed on the opportunity to respond with just a yes!

:lol:

Why yes. Yes, I did....

Terpy, who likes being unpredictable, sometimes...

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

 Share

  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...