Amusement park operator Six Flags Inc. said on Wednesday it would sell its Cleveland theme park and its European division, in separate deals that will raise $345 million to reduce debt and fund investments in its other parks. Shares of Six Flags jumped 7.6 percent as the company took steps to reduce its long-term debt load, which stood at roughly $2.4 billion as of Dec. 31.
Six Flags said it does not plan to sell any other parks. It called Cleveland, home of the Six Flags Worlds of Adventure park, its most difficult market. The company said it would take several years and meaningful capital investment to improve performance there.
It agreed to sell the park, including the adjacent hotel and campground, to Cedar Fair LP for $145 million in cash. Six Flags said it would retain ownership of all the marine and land animals currently located at the park.
The hundreds of animals, which range from flamingos to walruses to tigers, will be relocated to other Six Flags parks, a spokesman said. Cedar Fair said it would rename the park Geauga Lake. The 690-acre park includes a spring-fed lake, 10 roller coasters, several children's areas and a water park.
Six Flags also will sell its European division, which includes theme parks in Belgium, France, Germany and the Netherlands, to a private investment firm for $200 million. The deal excludes its interests in Warner Bros. Movie World theme park in Madrid.
The company said it still sees potential growth opportunities in Europe, but the sale of its operations there would allow it to concentrate its management and capital resources on its North American business.
Six Flags said it would book a first-quarter loss of about $70 million for the sale of the Cleveland park, and about $220 million for the European assets. It said both deals are subject to completion of definitive agreements and other conditions.
SOURCE: Reuters.
