June 1, 2001
Sandusky, OH -- Cedar Fair, L.P., a publicly traded partnership which owns and operates five amusement parks and five water parks, today announced that it has completed the acquisition of Michigan's Adventure Amusement Park, located near Muskegon, Michigan, in a transaction valued at approximately $28 million.
Michigan's Adventure is a traditional, family-oriented amusement park situated on approximately 250 acres. The park entertains more than 400,000 guests per year, principally from central and western Michigan and eastern Indiana. In 2000, Michigan's Adventure generated revenues of approximately $12 million and pro forma earnings before interest, taxes and depreciation (EBITDA) of approximately $5 million. Cedar Fair's revenues and EBITDA, before a non-recurring charge, for 2000 were $473 million and $163 million, respectively.
The transaction provides for the owners of Michigan's Adventure to receive 1,250,000 unregistered limited partnership units. Cedar Fair has assumed the complete operations and management of the park as of today.
As part of the transaction, Larry L. MacKenzie has been appointed Vice President and General Manager of Michigan's Adventure. Mr. MacKenzie, previously the Vice President of Revenue Operations for Dorney Park & Wildwater Kingdom, has been with Cedar Fair for more than 20 years.
Commenting on the transaction, Richard L. Kinzel, Cedar Fair's President and Chief Executive Officer, said, "With this acquisition, we have acquired a fine family-oriented amusement park that is an ideal addition to our existing group of parks and it will immediately be accretive to our cash flow. Along with our previously announced acquisition of Oasis Water Park, Michigan's Adventure provides us with another source of earnings and future distributions for our unitholders."