Six Flags Considers Selling Some Amusement Parks
Six Flags Entertainment Corp. is reevaluating its portfolio and may shutter or sell parks where thrill-seeker shrieks are faint.
The operator of 27 amusement parks launched Project Accelerate four months ago to “optimize the asset base, narrow management’s focus and help reduce net leverage,” according to its third-quarter earnings report.
In a call with investors, Six Flags CEO Richard Zimmerman declined to provide details, including a time frame for the review, but did confirm noncore asset sales could be possible.
“Every park in our portfolio has a role. If it plays its role right, these are irreplaceable assets,” Zimmerman said.
The company sold off two water parks in 2012 and 2013 and sold the land under Santa Clara Park several years later, he said.
A company spokesperson told the Courier Post there are currently “no plans to close parks.”
Under Project Accelerate, Six Flags has a target of reaching at least $800M of annual unlevered pre-tax cash flow by 2027.
The Q3 earnings report is the first following an $8B merger with Cedar Fair Entertainment. Overall, the company posted a net revenue of $1.35B, $558M of which relates to assets added in the merger.
Meanwhile, other theme park operators have large growth plans in the works.
The Walt Disney Co. last year revealed it wants to spend $60B on its theme parks and cruise operations over the next 10 years, nearly double its capital investment.
In Oklahoma, American Heartland, an affiliate of Mansion Entertainment Group, is set to spend $2B building a 1,000-acre amusement park, RV park and campground, though that project has reportedly stalled.
