Wednesday, October 7, 2009

The Deal of the Year

It has finally been announced that The Blackstone Group, a private investment firm, is purchasing the ABInBev Theme Parks, which include both Busch Gardens and the Sea World parks.

The transaction will total up to $2.7 billion, with $400 million of that being shared profits to take place after the transaction is complete. If you recall back in 2006 Cedar Fair purchased the former Paramount Parks for some $1.24 billion. Think about it for a minute and then decide which of the two overpaid - by a lot.

The Blackstone Group owns tons of businesses, everything from The Weather Channel, to health care companies, but relevant to this transaction is their ownership of Merlin Entertainments. Merlin operates many theme parks, including the Legoland chain of parks. Blackstone is also part owner of the Universal Orlando Resort - so they do have some experience in running very successful theme parks.

Of all the possibilities that could have happened with the Busch parks, I have to say I'm pretty pleased with this outcome. Hopefully the parks involved will continue to be the class acts they presently are, and continue down the successful road they are already on.