Two iconic theme park operators, Cedar Fair and Six Flags, have confirmed they are merging.

The two regional operators will combine to form a new company with a significant foothold on the North and Central American market, with 27 theme parks, 15 water parks and nine resort properties across 17 US states, Canada and Mexico.

The combined company will be valued at around US$8 billion, based on both companies’ debt and equity values as of 31 October 2023.

Once the deal has been completed, the company will operate under the name Six Flags and will be headquartered in Charlotte, North Carolina – with significant finance and administrative operations in Sandusky, Ohio.

Under the terms of the merger agreement, which has been unanimously approved by the boards of directors of both companies, Cedar Fair unit holders will receive one share of common stock in the new combined company for each unit owned, and Six Flags shareholders will receive 0.5800 shares of common stock in the new combined company for each share owned.

This will result in Cedar Fair unitholders owning 51.2 per cent and Six Flags shareholders 48.8 per cent of the combined company’s fully diluted share capital.

According to Richard Zimmerman, president and CEO of Cedar Fair, the move will result in the new company having an expanded and diversified footprint, a more robust operating model and "a strong revenue and cash flow generation profile".

“Our merger with Six Flags will bring together two of North America’s iconic amusement park companies to establish a highly diversified footprint to enhance park offerings and performance,” Zimmerman said.

“Together, we will have an expanded and complementary portfolio of attractive assets and intellectual property to deliver engaging entertainment experiences for guests.

"The combination also creates an enhanced financial profile with strong cash flow generation to accelerate investments in our parks to delight our guests, driving increased levels of demand and in-park value and spending. I have great respect for the Six Flags team and look forward to joining forces as we embark on this next chapter together.”

The new company will boast a portfolio that includes some of the most iconic parks in North America.

It will also have entertainment partnerships and a portfolio of IP, such as Looney Tunes, DC Comics and Peanuts to develop new attractions.

Richard Zimmerman will serve as president and CEO of the combined company and Selim Bassoul, president and CEO of Six Flags, will serve as executive chair of the company’s board of directors.