SANDUSKY, OH (CelebrityAccess MediaWire) — Cedar Fair, L.P. announced that it has entered into a definitive merger agreement to be acquired by an affiliate of Apollo Global Management, a leading global alternative asset manager.
Under the terms of the agreement, Cedar Fair unitholders will receive $11.50 in cash for each Cedar Fair limited partnership unit that they hold, representing a 43% premium over Cedar Fair's volume weighted average closing unit price over the past 30 days and a 28% premium over the closing unit price on December 15, 2009. The transaction is valued at approximately $2.4 billion, including the refinancing of the Company's outstanding indebtedness. Affiliates of J.P. Morgan, BofA Merrill Lynch, Barclays Capital Inc., UBS Investment Bank and KeyBanc Capital Markets have provided an aggregate of $1.95 billion financing commitment in support of the transaction.
The board of directors of Cedar Fair has unanimously approved the merger agreement and has resolved to recommend that Cedar Fair limited partnership unitholders adopt the agreement.
Cedar Fair's chairman, president and chief executive officer, Dick Kinzel, said, "We have considered a wide range of strategic alternatives over the past several years. After considering these strategic alternatives, we have concluded that the transaction with Apollo is in the best interest of our unitholders."
"This transaction allows Cedar Fair unitholders to realize significant value from their investment in our Company over recent trading levels," added lead director, Michael Kwiatkowski. "Apollo has a strong track record of growing businesses, and its desire to add Cedar Fair to its portfolio serves as a testament to our solid business model and the talent of our people."
Aaron Stone, a Senior Partner at Apollo, said, "We are extremely pleased to be acquiring this premier amusement park operator. We look forward to partnering with Cedar Fair's management team and employees to build on the many strengths of the Company. We are firmly committed to Cedar Fair's continued growth as an industry leading amusement park operator." –by CelebrityAccess Staff Writers