California's Great America Sold

[Paradise]

http://www.cedarfair.com/ir/press_relea ... ory_id=321

Cedar Fair (NYSE: FUN), a leader in regional amusement parks, water parks and active entertainment, today announced that it has entered into a definitive agreement to sell its California's Great America amusement park, located in Santa Clara, California, to JMA Ventures, LLC ("JMA") for $70 million in cash. The Company, which purchased the park in 2006, expects to use the cash proceeds from this sale to reduce its senior secured debt.

"Our decision to divest of our California's Great America park was not an easy one," said Dick Kinzel, Cedar Fair's chief executive officer. "This is a quality park that has terrific employees and serves a strong market. That being said, as part of our regular comprehensive review of our portfolio of parks, we determined that divesting a smaller park like California's Great America at an attractive market value created a compelling business opportunity that we couldn't pass up. Among other things, it provides us the opportunity to immediately de-lever our balance sheet resulting in additional financial flexibility for growth and unitholder value creation in the future. California's Great America and its employees have always demonstrated tremendous capability in providing its customers with the highest level of family entertainment in the northern California region. I'm confident the park and its employees will continue to thrive under the ownership of JMA."

"As we look toward 2012, we are building significant momentum for Cedar Fair to deliver consistent and meaningful distributions to our unitholders," said Matt Ouimet, Cedar Fair's president. "At the same time, we remain committed to driving top-line growth through a combination of new rides and attractions, marketing initiatives and related strategic expansion around our entire portfolio of premier entertainment venues. The divestiture of California's Great America will provide us with additional financial flexibility earlier than anticipated to achieve these goals and maintain Cedar Fair's position as one of the most attractive growth and yield stories in the leisure and hospitality industry."

The transaction, which is subject to approval by the City of Santa Clara and customary closing conditions, is expected to close in the fourth quarter of 2011. Cash proceeds received at closing are expected to be applied to the Company's senior secured debt under the terms of the Company's credit agreement. A Form 8-K with the material terms of the definitive agreement will be filed with the Securities and Exchange Commission by the end of day Tuesday.

California's Great America is northern California's leading amusement park, with more than 50 rides and attractions. JMA Ventures, LLC is a California-based full service real estate investment firm, serving as managing partner of over $500 million in existing projects spanning hospitality, leisure, residential developments, retail, office and industrial/telecom.

[CoasterNick3157]

I guess another one bites the dust.

[Muck Finnesota]

I wonder why it took this long? Hopefully the two B&M rides are relocated somewhere close to me- Top Gun and Vortex are right at the top of my coaster bucket list.

[Cole]

Wait... So its done all toegether? No ones saving it?

[DejaVu2001]

I'm confident the park and its employees will continue to thrive under the ownership of JMA.

That suggests the park will continue to operate. However, I doubt it will operate for very long. JMA is a real estate investment company. My guess is they will only operate the park until they have time to plan what will replace it. It has also been noted that JMA may have an interest in the whole 49ers stadium thing.

[FParker185]

$70 million sounds pretty low. I think that's a good tell that they don't plan to continue operating it at a park for all that much longer. And that's besides the fact that the park is despised by the owners of and the people that work in all the office buildings surrounding the park and it's in the way of a new NFL Stadium.

Of course the company that turned into Premeir Parks and then Six Flags was an real estate investment firm that bought Frontier City in order to close it down and build condos, and they realized that the park was more profitable than condos would be in it's location so they continued to operate the park and the end of that story was they ended up buying the entire Six Flags chain and was one of the largest amusement park operators in the world. So you never know what may happen. And it does say....

"JMA Ventures, LLC is a California-based full service real estate investment firm, serving as managing partner of over $500 million in existing projects spanning hospitality, leisure, residential developments, retail, office and industrial/telecom. "

[ragingbull1331]

Demon is now a one of a kind coaster...

and I would laugh to see Vortex come to SFGAm in place of Iron Wolf

[coasterkidd100]

I just can't believe that Cedar Fair would just get rid of the park. I hope the new owners atleast keep the park running right.

[FParker185]

http://www.sfgate.com/cgi-bin/article.c ... .DTL&tsp=1

This article is a little better with more details. Though it doesn't mention it, that land can only be used for an operating Amusement Park, so the park will more than likely remain there and open, but the new owners will probably half-ass it, looks like the 49'ers tracked them down since they will be willing to A. buy the place and B. not oppose the stadium

[Coaster Justin]

You'd think they would want to keep the park open until the economy improves.

It might still exist. Remember Cedar Point Anyone?

[FParker185]

Change of plans.....

http://www.prnewswire.com/news-releases ... 17088.html

And Cedar Fair no longer opposes the stadium. I think the new Cedar Fair CEO has a plan.

[6Flags4Evr]

This is quite an interesting turn of events. Hopefully Cedar Fair will seize this oppurtunity and make CGA a more better park than it was before but I have my doubts. Hopefully we won't have to see a repeat of Geauga Lake.

[Sporlo]

Wikipedia says "Flight Deck [Top Gun] is the first Custom inverted roller coaster ever made"
Erm, am I missing something? Wasn't BTR custom designed to fit in the small area it sits in now? Or is the article simply implying that Top Gun hasn't been cloned at all?

[DejaVu2001]

Our Batman is a custom design. The thing about Wikipedia is that any coastard can edit it, whether they know anything or not. That wording has now been removed.