EQT taps advisors for strategic review of US business of Parques Reunidos, sources say

Six Flags Entertainment

30/07/2024 17:57

By Andres Gonzalez
       LONDON, July 30 (Reuters) - Private equity firm EQT
 EQT.N  has initiated a strategic review of the U.S. operations
of Spanish amusement park operator Parques Reunidos that could
lead to a sale of the business, according to two sources
familiar with the matter.
    JP Morgan is conducting the review, which could result in
the sale or merger of the 15 leisure centres that the company
operates in the U.S., the sources said on condition of anonymity
because the discussions are private
    The review is at an early stage, and it is premature to
predict its outcome, according to one of the sources. EQT could
choose to retain the asset following the review, the person
said. 
    The potential sale of Parques Reunidos' U.S. operations,
which represents over a third of the group's core earnings,
could be valued at around 1 billion euros, according to the
second source. 
    The review would start after the summer season, when the
parks witness their highest visitor turnout, the person said.
    Parques Reunidos did not reply immediately to a request for
comment. JP Morgan declined to comment. 
    In 2023, Parques Reunidos' earnings before interest, taxes,
depreciation, and amortization (EBITDA) reached 233.4 million
euros, marking a 3.8% increase from the previous year, based on
its latest public annual accounts.
    The potential deal follows the $8 billion merger between two
of the largest U.S. amusement park operators, Cedar Fair  FUN.N 
and Six Flags Entertainment  SIX.N , announced last year.
    Despite ongoing inflationary pressures and economic
uncertainty, Parques Reunidos projects a cash flow of 224.8
million euros in 2024, up from the 192 million euros achieved in
2023, according to its latest accounts.

 (Reporting by Andres Gonzalez, editing by Alexandra Hudson)
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