Six Flags Inc. (NYSE: SIX) has sold three of its waterparks and four theme parks in a $312 million deal designed to reduce debt. In addition, three of the other four theme parks in the deal include waterparks.
The three stand-alone waterparks are SplashTown in Houston; Waterworld USA in Concord, Calif.; and White Water Bay waterpark in Oklahoma City, Okla. The theme parks with waterparks included are Six Flags Darien Lake in Buffalo, N.Y.; Six Flags Elitch Gardens in Denver; and Wild Waves and Enchanted Village in Seattle. Finally, there?s Frontier City theme park in Oklahoma City, Okla.
The parks that were sold generated a total of about $30 million in park earnings before income taxes, depreciation and amortization. They also attracted about 3.6 million in attendance in 2006.
The parks were sold to CNL Income Properties Inc., a Florida-based real estate investment trust.
The sale was part of Six Flags? goal to reduce debt by several million dollars in the next few years. It plans to increase revenue by upping guest spending, selling assets, transitioning to a more family-friendly brand, and creating more corporate alliances with major consumer brands. It recently teamed up with Coldstone Creamery, Heinz and pro skateboarder Tony Hawk.
?A targeted increase in our media spending and strong new entertainment alliances have us poised to realize attendance gains, making for a successful 2007 season,? said Mark Shapiro, Six Flags president/CEO.
Six Flags now owns and operates four waterparks and seven theme parks with waterparks included. It owns a total of 21 parks, including one in Mexico and one in Canada.
There are no current plans to expand the existing waterparks, said Wendy Goldberg, senior vice president of communications at Six Flags, based in New York.