Apollo Global Management, the New York private equity firm that hopes to buy Cedar Fair, also wants to acquire the bankrupt Six Flags amusement park chain and merge the two companies together, a published report claims. A story from the Dow Jones Bankruptcy Review, posted at the Wall Street Journal's Web site, reported Tuesday unnamed Six Flags creditors "speculate" about such plans.
"They suspect investors led by Avenue plan to merge Six Flags with Cedar Point once they gain control of the company in bankruptcy," Dow Jones reporter Peggy Buckley wrote, referring to Avenue Capital Management, identified as a company leading an effort to take control of Six Flags.
The story on a hearing in bankruptcy court said Avenue Capital Management officials visited Cedar Fair headquarters in Sandusky last fall. Six Flags' creditors "also point to an e-mail that indicated Six Flags' backers were eyeing Apollo Management LP as a potential source of investment," the article said. Stacy Frole, Cedar Fair's director of investor relations, said Wednesday Cedar Fair had no comment.
"We wouldn't be able to speak to Apollo's intentions," she said. "That would be a question geared toward Apollo." A spokeswoman for Apollo said the company has no comment. Frole said she can't say anything about the discussions last year between Avenue Capital Management and Cedar Fair's executives. "We don't comment on our conversations with potential investors," she said. Avenue Capital Management didn't return a call seeking comment.
Cedar Fair's special meeting to vote on Apollo's proposed acquisition of Cedar Fair will be 9 a.m. Tuesday at Sandusky State Theatre. Cedar Fair owns 11 amusement parks and six water parks. It also runs an amusement park in California under a management contract. Six Flags has 21 North American sites, including theme parks, water parks and other attractions. It filed for Chapter 11 bankruptcy protection on June 13 but said it would continue to operate its parks.
Well recently, the deal for Apollo buying Cedar Fair was terminated, so it's possible that they may try and buy Six Flags next. Change will not come if we wait for some other person or some other time. We are the ones we\'ve been waiting for. We are the change that we seek.
When I had spoken to Mark Shapiro, I asked him if he thought Apollo Management would purchase Six Flags Inc after acquiring Cedar Fair and he said no. The deal with Cedar Fair would need to take place first, then if Apollo Management were to purchase Six Flags it would be sometime before that would happen, however, he can confirm that there is no current deals of Apollo Management or any other chain purchasing the Six Flags company.
