Private equity firm EQT has initiated a strategic review of amusement park operator Parques Reunidos that could lead to a sale of its US business.
Reuters reports that EQT has enlisted JP Morgan to conduct the review, which may result in the sale or merger of its US assets.
Palace Entertainment, Parques Reunidos’ US subsidiary, is based in Pennsylvania. The company hosts millions of visitors annually at more than 20 locations across the US.
These include historic parks like Lake Compounce (1846), Kennywood (1898), and Idlewild (1878), as well as Adventureland, Castle Park, Dutch Wonderland, Noah’s Ark, Storyland, Sandcastle, and three Raging Waters sites.
According to the report, the review is at an early stage, due to start after the summer season. EQT could opt to retain Parques Reunidos’ assets after the review.
The potential sale could be valued at around €1 billion, and comes after the recent $8bn merger between Six Flags and Cedar Fair.
John Reilly, CEO of Palace Entertainment, recently spoke to blooloop about the company’s history.
“Our portfolio is unique, but it’s also diverse. We have a collection of historic amusement parks and specific expertise in caring for these national treasures. Kennywood, for example, is a national historic landmark,” he said.
Growth at Palace Entertainment
“Our portfolio consists of the historic amusement component, the children’s component, and then we also have a very strong water park component: Parques Reunidos is the largest water park operator in the world, and in the US and Australia we have eight standalone water parks, as well.”
On expanding Palace Entertainment’s assets, he said: “The company has been very active and has achieved its growth through acquisitions. We haven’t built parks, we’ve acquired parks.
“When we do it, we respect their unique regional identities and brands, and we foster those qualities, while simultaneously enriching them with global expertise that helps them grow.”
Images courtesy of Palace Entertainment
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