Cedar Fair signs agreement to acquire Schlitterbahn parks

[Oldiesmann]

https://ir.cedarfair.com/news/news-details/2019/Cedar-Fair-Signs-Definitive-Agreement-to-Acquire-Two-Iconic-Texas-Water-Parks-From-Schlitterbahn/default.aspx

This also allows them to acquire the land from the one in Kansas City for development as well...

[malem]

Well, that was unexpected. I'm really glad to see Cedar Fair add destination waterparks, in any case. Hopefully we'll also see good things at the existing Cedar Fair waterparks.

What does everyone think about whether they'll keep the Schlitterbahn name at the Texas parks? It's very iconic there, but its association with the Kansas City, KS park could be a factor after the 2016 accident.

I also have to wonder how season passes will work; the current price of a "platinum" pass good at both Texas waterparks is higher than the current price of a Cedar Fair platinum pass ($275 vs $220).

[XGatorHead 8904]

Wow... I didn't see this coming!  We went to Schlitterbahn in New Braunfels in 2010, and it was the best waterpark I've ever been too.  Good purchase by Cedar Fair!  I'd love to get down there again, but now that my friends have moved out of Texas it's not likely that I'd vacation there again, although it would be nice to spend more time in San Antonio.

[SonofBaconator]

Its nice to see Cedar Fair venture out to different properties in different areas of the country. 

[Cedar Fair Fanboy]

Now Cedar Fair got the best water park in the world in their lineup. That's cool!

[BeeastFarmer]

I can see a lot of upside in this:  new markets, a new resort, new opportunities for Haunt/Winterfest, etc.  If they decide to purchase the Kansas City location, it would give them dominance in that market.  (But does it include the land and attractions or just the land?).  For Texas, if Schlitterbahn keeps the other properties, I would imagine the names would be changed eventually.

 

However....with the recent purchase of the and under California's Great America, the company has added almost a half billion of new debt.  The payments from CGA should likely be negated from the savings of the yearly lease payments, though.

[CoastersRZ]

It was mentioned in this article: https://www.mysanantonio.com/business/local/article/Schlitterbahn-sells-New-Braunfels-Galveston-13985150.php that they intend to rebrand the South Padre property that they will continue to own.  Looks like the impetus for the sale is to pay off a large note payment that they had to pay to EPR Properties.

It will be interesting to see what changes Cedar Fair makes.  Also interesting since Cedar Fair had previously sold off some of its stand alone water parks in California.  It will provide some diversification as they do not have any operations in Texas.  It appears that the deal will close in the second quarter, so relatively soon.

EPR properties owns several amusement related properties, including several that are managed by Six Flags: Six Flags Darien Lake, Frontier City, and Six Flags Hurrican Harbor Phoenix.

[malem]

The $6M purchase price says a lot about the value of the Kansas City park. Perhaps we'll see some of its slides distributed to other Cedar Fair parks if they pursue that option.

[BoddaH1994]

37 minutes ago, malem said:

The $6M purchase price says a lot about the value of the Kansas City park. Perhaps we'll see some of its slides distributed to other Cedar Fair parks if they pursue that option.

It’s quite possible that it was never winterized, knowing that it wasn’t going to reopen. That would cost a pretty penny to reverse.

[ziplock]

Did not expect this acquisition- hopefully Cedar Fair invests in further developing these properties.  I visited the New Braunfels location last August for the first time in nine years and it seemed as if not much had changed since my last visit.  It is a wonderful waterpark as it is, but hopefully new ownership will breath a little more life back into the park and return it to the forefront of pioneering the waterpark industry as it was a decade ago.  

The New Braunfels park could greatly benefit from the addition of new major attractions just for the sake of dispersing crowds.  Despite its lack of recent additions, the place still attracts huge crowds, pushing wait times for most signature slides well over an hour on normal operating weekdays. 

[befat]

6 hours ago, CoastersRZ said:

It was mentioned in this article: https://www.mysanantonio.com/business/local/article/Schlitterbahn-sells-New-Braunfels-Galveston-13985150.php that they intend to rebrand the South Padre property that they will continue to own.  Looks like the impetus for the sale is to pay off a large note payment that they had to pay to EPR Properties.

It will be interesting to see what changes Cedar Fair makes.  Also interesting since Cedar Fair had previously sold off some of its stand alone water parks in California.  It will provide some diversification as they do not have any operations in Texas.  It appears that the deal will close in the second quarter, so relatively soon.

EPR properties owns several amusement related properties, including several that are managed by Six Flags: Six Flags Darien Lake, Frontier City, and Six Flags Hurrican Harbor Phoenix.

Interesting that there is no mention of the Corpus Christi property. I wouldn’t be surprised if this is the end of Schlitterbahn as a brand name. It goes to show how a tragedy can impact a brand name. (See Sea World).

[malem]

^^^ See also reports from a Kansas City news station prior to Memorial Day. https://fox4kc.com/2019/04/22/with-just-weeks-until-summer-it-doesnt-look-like-schlitterbahn-will-open-in-2019/

Quote

Sources say KCKPD has also used some of Schlitterbahn's buildings for training, and the condition of the inside of those buildings indicates the water park will not be reopening.

5 minutes ago, befat said:

Interesting that there is no mention of the Corpus Christi property. I wouldn’t be surprised if this is the end of Schlitterbahn as a brand name. It goes to show how a tragedy can impact a brand name. (See Sea World).

The Corpus Christi property was sold last year; I would be surprised if the Schlitterbahn branding at that park stays around much longer. https://kristv.com/news/local-news/2019/04/24/new-direction-for-waves-resort-cc-featuring-schlitterbahn/

[befat]

39 minutes ago, malem said:

^^^ See also reports from a Kansas City news station prior to Memorial Day. https://fox4kc.com/2019/04/22/with-just-weeks-until-summer-it-doesnt-look-like-schlitterbahn-will-open-in-2019/

The Corpus Christi property was sold last year; I would be surprised if the Schlitterbahn branding at that park stays around much longer. https://kristv.com/news/local-news/2019/04/24/new-direction-for-waves-resort-cc-featuring-schlitterbahn/

Thanks.  I figured they still fully owned the property since it’s still on their website. But then again, so is the Kansas City property. I’d love to see a full case study on Schlitterbahn once this is all said and done. 

[befat]

Sorry for the double post. The South Padre property is also being rebranded. https://schlitterbahn.org/guests/

[malem]

2020 season passes went on sale today for the two Schlitterbahn parks now owned by Cedar Fair. Payment plans are being offered for the first time at those parks, but (as of now) only single-park passes are being offered.  https://schlitterblog.com/get-a-2019-2020-season-pass-for-16-a-month/

No word on whether any Cedar Fair passes will be valid at Schlitterbahn parks for 2020.

[Diamondback96]

On 8/8/2019 at 1:06 PM, malem said:

2020 season passes went on sale today for the two Schlitterbahn parks now owned by Cedar Fair. Payment plans are being offered for the first time at those parks, but (as of now) only single-park passes are being offered.  https://schlitterblog.com/get-a-2019-2020-season-pass-for-16-a-month/

No word on whether any Cedar Fair passes will be valid at Schlitterbahn parks for 2020.

And now there is word. CF Platinum passes will get you into Schlitterbahn Galveston and New Braunfels starting January 7. https://www.visitkingsisland.com/tickets-passes/season-passes

The KC location isn't mentioned, most likely because they don't own it yet. Although if they do buy it they won't reopen it, they'll just repurpose what they can elsewhere and probably sell the land to a developer.

[malem]

Cedar Fair's season pass legal terms were updated for the purchased Schlitterbahn properties. https://www.cedarpoint.com/legal/season-pass-terms

Quote

All Season Dining, All Season Drink Plan, Season Pass Fast Lane, and Season Pass Locker not available at Schlitterbahn New Braunfels and Schlitterbahn Galveston.  

According to the latest Cedar Fair earnings call, the Schlitterbahn parks are expected to be fully integrated for the 2021 season, so it makes sense that those systems won't be ready next year. https://www.fool.com/earnings/call-transcripts/2019/08/08/cedar-fair-lp-fun-q2-2019-earnings-call-transcript.aspx

[BoddaH1994]

10 hours ago, malem said:

Cedar Fair's season pass legal terms were updated for the purchased Schlitterbahn properties. https://www.cedarpoint.com/legal/season-pass-terms

According to the latest Cedar Fair earnings call, the Schlitterbahn parks are expected to be fully integrated for the 2021 season, so it makes sense that those systems won't be ready next year. https://www.fool.com/earnings/call-transcripts/2019/08/08/cedar-fair-lp-fun-q2-2019-earnings-call-transcript.aspx

I wonder if the Platinum Pass will work next year. I’m assuming it does.

[King Ding Dong]

10 minutes ago, BoddaH1994 said:

I wonder if the Platinum Pass will work next year. I’m assuming it does.

 

On 8/16/2019 at 1:46 AM, Diamondback96 said:

And now there is word. CF Platinum passes will get you into Schlitterbahn Galveston and New Braunfels starting January 7. https://www.visitkingsisland.com/tickets-passes/season-passes

The KC location isn't mentioned, most likely because they don't own it yet. Although if they do buy it they won't reopen it, they'll just repurpose what they can elsewhere and probably sell the land to a developer.

Your answer was one post up from Malem’s.   I know, it’s late 

[malem]

The South Padre Island park, which wasn't purchased by Cedar Fair, has announced its new name: Beach Park at Isla Blanca.

[King Ding Dong]

Well I guess that is a little easier to pronounce.  

[malem]

Layoffs have begun at both acquired parks. https://www.kens5.com/amp/article/news/local/schlitterbahn-laying-off-employees-following-ownership-change-this-summer/273-1334d590-7277-40c4-930f-4ba42d8dc7c0

[CoastersRZ]

The layoffs, while not cited in the article, are likely a result of duplicate functions/positions, and the need to streamline for cost synergies.  

It will be interesting to see what changes they implement in the coming years.

[BoddaH1994]

On 9/20/2019 at 10:07 PM, CoastersRZ said:

The layoffs, while not cited in the article, are likely a result of duplicate functions/positions, and the need to streamline for cost synergies.  

It will be interesting to see what changes they implement in the coming years.

They used the phraseology they they planned to, “streamline the business” which is likely exactly what you’re talking about.

[SonofBaconator]

On 9/20/2019 at 10:07 PM, CoastersRZ said:

are likely a result of duplicate functions/positions, and the need to streamline for cost synergies.

[malem]

As of today, Schlitterbahn has dropped the price of 2020 season passes for the holidays to $89.99.

The price for New Braunfels was originally $144.99 ($104.99 child/senior) when passes went on sale in August, dropping to $129.99 ($89.99 child/senior) last month.