Apollo Unit Agrees To Buy Cedar Fair

Buyout shop Apollo Management said it has agreed to buy Ohio theme-park company Cedar Fair for $635 million.

The total transaction is valued at $2.4 billion including the refinancing of the company’s outstanding debt.

Shareholders of the Sandusky, Ohio-based company would receive $11.50 in cash for each Cedar Fair Limited Partnership Unit they hold, the company said. Cedar Fair said that represents a premium of 28 percent over the company’s closing price on Dec. 15.

Cedar Fair last month reported that its third quarter revenue fell 4 percent to $519.9 million and said it would review alternatives to improve its operating performance.

In March, Cedar Fair cut its dividend and said it would continue to pursue the sale of its excess land to reduce debt and strengthen its balance sheet.

The deal is contingent upon shareholder and regulatory approvals.

Cedar Fair owns and operates 11 amusement parks, six outdoor water parks, one indoor water park and five hotels.

(Reporting by Megan Davies and Steve Eder)