December 18, 2000
New York, NY -- Six Flags, Inc. announced today that it has entered into a letter of intent with the City of Montreal to acquire La Ronde, a 146 acre theme park located near downtown Montreal on the former site of the 1967 Montreal World's Fair. The Company indicated that it is currently negotiating a purchase contract whereby it would acquire all of the park assets for $20 million (US) and lease the land from the City of Montreal on a long-term basis.
As part of the transaction, Six Flags is committing to make an investment of $60 million (US) in the park over three to four seasons commencing with the 2002 season.
Assuming the transaction is consummated, Six Flags would take over the operation of the park for the 2001 season but would not make any investment in the facility until after that season.
"We are truly honored to have been chosen by the City of Montreal to acquire La Ronde. This is a terrific opportunity for us, Kieran E. Burke, Chairman and Chief Executive Officer of Six Flags. "Montreal is a sophisticated, world class city with rich cultural traditions to draw on in the theming of the park."
"The City and the Province of Quebec provide a large residential population and significant numbers of tourists from which to attract park patrons," stated Burke. "The park enjoys a superb location and already generates attendance in excess of one million visitors on an annual basis. With appropriate marketing and investment and the introduction of our Six Flags' brand and Warner Bros. characters, we can transform La Ronde into a world class theme park."
The proposed transaction is subject to, among other things, execution and delivery of a definitive purchase agreement and satisfactory completion of customary due diligence. A closing in early 2001 is anticipated.
Six Flags is the world's largest regional theme park company, with thirty-seven parks in markets throughout North America and Europe.