The parent company of Knotts Berry Farm confirmed on Tuesday that SeaWorld Entertainment made an “unsolicited, non-binding proposal” to purchase Cedar Fair, which owns a dozen amusement parks in Orange County.
SeaWorld, which owns 12 parks, including the San Diego marine park, offered Cedar Fair $3.4 billion, as first reported by Bloomberg.
“The Cedar Fair Board of Directors will carefully review and consider the proposal to determine the course of action that it believes is in the best interest of the Company and its unitholders,” a Cedar Fair spokesperson said in a statement.
SeaWorld Entertainment has suggested it incurred economic hardships when the pandemic forced the closures of parks. However, third-quarter revenue was up $415.1 million compared to the third quarter of 2020, to $521.2 million, according to SeaWorld’s third quarter report.
“The more we think about this potential deal, the more it makes total sense to us,” Stifel analyst Steven Wieczynski wrote in a research note published Tuesday.
The company's most recent figures showed a net income of $102.1 million, the second-highest third-quarter net income for SeaWorld, and an increase of $181.3 million from the third quarter of 2020. Compared to the third quarter of 2019, net income increased by $4.1 million or 4.2 percent.
Cedar Fair also owns and operates nine water parks, as well as more than a dozen lodging properties. According to recent figures, Cedar Fair's third quarter had a record $753 million in net revenue.
"Consistent with its fiduciary duties, and in consultation with its independent legal and financial advisors, the Cedar Fair Board of Directors will carefully review and consider the proposal to determine the course of action that it believes is in the best interest of the Company and its unitholders. Cedar Fair unitholders do not need to take any action at this time," the company stated
SeaWorld will open its latest coaster, Emperor in March. The new theme park, Sesame Place San Diego, what was previously Aquatica water park in Chula Vista, is also slated to open.
