Six Flags will sell seven parks to EPR for $331 million
Posted
From the press release:
Six Flags Entertainment Corporation (NYSE: FUN) (“Six Flags” or the “Company”), North America’s largest regional amusement park operator, today announced it has entered into definitive agreements to sell seven of its parks to EPR Properties (NYSE: EPR) (“EPR”) for total cash consideration of $331 million, subject to customary purchase price adjustments. The transaction represents a significant milestone in the Company’s disciplined portfolio optimization strategy and is designed to sharpen operational focus while further enhancing its liquidity position.
The parks included in the transaction are Valleyfair (Minneapolis, Minn.), Worlds of Fun (Kansas City, Mo.), Michigan’s Adventure (Grand Rapids, Mich.), Schlitterbahn Waterpark Galveston (Galveston, Texas), Six Flags St. Louis (St. Louis, Mo.), Six Flags Great Escape (Queensbury, N.Y.) and Six Flags La Ronde (Montreal, QC). Collectively, the parks entertained approximately 4.5 million guests for the full year ended Dec. 31, 2025, generating approximately $260 million in net revenue and approximately $45 million in Adjusted EBITDA. Cash proceeds, after taxes and transaction expenses, will be used to pay down debt. On an after-tax basis, net proceeds are expected to be slightly beneficial to the Company’s leverage ratio.
Related parks
Nothing especially new here, other than Dennis Spiegel saying that the sale price of the 7 parks was too low, and that they are “mid-tier, mediocre-performing parks” ... which maybe suggests the sale price was right?
EBITDA (for as much as it gets bashed by many here) is a basis for establishing sales prices of businesses all the time (sales often reported as a certain multiple of EBITDA). Enterprise value for Six Flags as of December 31, 2025 was about $6.73 billion. EBITDA for 2025 was about $792 million yielding an EBITDA multiple of about 8.5x for the entire chain. Individual parks will have an EBITDA multiple that is higher or lower than that of the entire chain. Sales price of the 7 parks is $331 million. EBITDA for those parks is about $45 million yielding an EBITDA multiple of about 7.4x. A little less than the multiple for the entire chain but as everyone knows, the parks sold are not the crown jewels of the chain.
We have talked about it many times over the years here. Many more entertainment and vacation options today. Destination resorts/parks continue to add capacity. Over time that has put downward pressure on value of regional parks. Though not all impacted equally. Expect that will continue going forward.
You must be logged in to post
