Cedar Fair – a US-based owner and operator of amusement parks and waterparks – has signed a definitive agreement for the acquisition of the Paramount Parks group.

Ohio-based Cedar Fair is to acquire Paramount Parks – a wholly owned subsidiary of mass media company CBS Corporation – for a cash purchase price of US$1.24bn (£661m, 971m euro).

Paramount’s stock comprises five parks – Canada’s Wonderland near Toronto; King’s Island near Cincinnati in Ohio; King’s Dominion near Richmond in Virginia; Carowinds near Charlotte in North Carolina and Great America in Santa Clara, California.

The parks will remain open throughout the sale under the operation of Paramount.

Dick Kinzel, chair of Cedar Fair, said: “The transaction offers an opportunity to acquire an asset portfolio of family-oriented parks that fit well with our existing parks. The acquisition will provide the potential for incremental cash flow as we realise US$20–30m (£11–16m, 16–23m euro) in annual cash flow transactions over the next three to five years.”

The transaction is subject to conditions, including regulatory approval, and is expected to close during the third quarter of this year.

Cedar was advised by Bear Stearns, who provided US$2bn (£1m, 1.6bn euro) in committed financing for the transaction. Details: www.cedarfair.com

Photograph: Great America in Santa Clara, California