NY Post says Cedar Fair in talks with Destiny Capital for $4.1 billion sale

Posted Monday, July 30, 2007 9:56 AM | Contributed by Jeff

Cedar Fair Entertainment Co., the nation's third-largest theme-park operator, has entered into quick-moving talks with investment firm Destiny Capital Solutions about a $4.1 billion takeover, The Post has learned. The deal Destiny Capital proposed calls for paying $4.1 billion, or a 20 percent premium over Cedar Fair's current market value, to acquire all of the theme-park operator's shares. The firm also said it plans to commit at least $500 million, and as much as $800 million, to upgrade Cedar Fair's 12 amusement parks, six water parks and six hotels.

Read more from The New York Post.

Monday, July 30, 2007 11:03 AM
Am I the only one who cannot find a thing about Destiny Capital Solutions? Anyone having any luck?

Mike

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Monday, July 30, 2007 11:09 AM
Here's a little story about them helping out Gilroy Gardens, so it seems they already have a little CF involvement.

http://www.alliant1.com/GilroyGardens

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Monday, July 30, 2007 11:19 AM

So in a nutshell, Cedar Fair's smallest park is actually buying out the entire chain?!

why does this sound familiar?

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Monday, July 30, 2007 11:19 AM
This is interesting...
A quick Google search brought up this link:
http://www.alliant1.com/GilroyGardens

also...
http://www.gilroydispatch.com/news/contentview.asp?c=217883

It seems that Destiny Capital Solutions is a firm that was incorporated specifically to put up the money to buy out Bonfante Gardens, for which Cedar Fair inherited a management contract when it bought Paramount Parks.

So in a nutshell, Cedar Fair's smallest park is actually buying out the entire chain?!

What worries me about this is the possibility that this is another Tierco. Remember them?

--Dave Althoff, Jr.

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Monday, July 30, 2007 11:36 AM
"The investors want to bring two large roller coasters and a "mega water ride" to the park by June 2008, followed by the opening of an indoor-outdoor water park and a six-story hotel by the summer of 2009"

That seems pretty ambitious to me. But could help explain a lot of the $500-$800 Million they're talking about.

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Monday, July 30, 2007 11:53 AM
Just on the surface, it looks like this firm really wants Gilroy and thinks buying the entire chain will somehow help that cause. What I don't get is Cedar Fair doesn't even own Gilroy, it just manages it.
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Monday, July 30, 2007 12:02 PM
Edit: Well, that post below really clears things up, eh? It's like April Fool's without the funny...

So true. I kept doing some research and finally came up with pretty much what you guys did as well.

It sounds like this McDuff character is obsessed with his redevelopment plan for Gilroy Gardens to the point of trying to purchase Cedar Fair for that management contract.

Scary, very scary.

Mike*** This post was edited by MHammer82 7/30/2007 1:07:04 PM ***

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Monday, July 30, 2007 12:42 PM
Its all fake. Cedar Fair just put out a press release.

http://www.cedarfair.com/ir/press_releases/index.cfm

I wonder how much big money got out around $29.00? Conveniently right before the company releases earnings tomorrow morning.

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Monday, July 30, 2007 1:07 PM
That’s odd that Reuters would run the same story without getting it straight first as they are pretty reputable finance source. You’d think they wouldn’t just take anything the NY post says as fact and run with it.
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Tuesday, July 31, 2007 12:13 AM
Here's an older article about Destiny and their original offer to the city of Gilroy. I love it just for the comments from the BANANA (Build Absolutely Nothing Anywhere Near Anything) crowd. I moved here 5 years ago, and "would rather the park not be there at all." Typical...

http://gilroydispatch.1871dev.com/news/contentview.asp?c=218016
*** This post was edited by RatherGoodBear 7/31/2007 12:14:01 AM ***

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