According to the article, Six Flags to sell 7 of its parks across US, Canada: What to know, famed amusement park company Six Flags Entertainment Corporation has announced plans to sell seven parks across North America.

In a recent press release, Six Flags announced an agreement to divest seven locations spanning the United States, as well as one in Canada.

Move Designed to “Sharpen Operational Focus”

The release says the move, which transfers ownership to EPR Properties, was "designed to sharpen operational focus while further enhancing its liquidity position."

The Impacted Parks

The seven impacted parks include Valleyfair in Minneapolis, Minnesota; Worlds of Fun in Kansas City, Missouri; Michigan's Adventure in Grand Rapids, Michigan; Schlitterbahn Waterpark Galveston in Galveston, Texas; Six Flags St. Louis in Eureka, Missouri; Six Flags Great Escape in Queensbury, New York; and Six Flags La Ronde, in Montreal, Quebec.

Agreement between Six Flags and EPR Properties

The agreement between Six Flags and EPR Properties includes a cash consideration of $331 million and is "subject to customary purchase price adjustments," per the release.

The parks will remain on their regular operating schedules and "no significant impact on guests is expected during this transition," according to the release.

Six Flags said it plans to continue operating its remaining 34 parks across 23 locations in North America during 2026.

According to the announcement, the transaction is expected to close in either the end of the first financial quarter or beginning of the second quarter.

Six Flags Statement

In a statement to the media, a Six Flags spokesperson said, "We understand how meaningful these parks are to the communities they serve and to the guests who have grown up visiting them. Our teams at these locations have created countless memories, and they are an important part of the Six Flags family. We're confident in the future of these parks under the care of EPR and its operating partners, who have strong experience managing parks of this scale."

They continued, "At the same time, this decision allows Six Flags to invest more deeply in the parks with the greatest opportunity for growth and innovation. We'll be better positioned to invest in new rides and attractions, upgrade park infrastructure and technology, enhance the guest experience with more immersive entertainment and introduce innovations that make every visit even more memorable." 

EPR Properties Statement

In a recent press release, EPR Properties chair and CEO Gregory K. Silvers called the seven park acquisition "a compelling opportunity to expand our attractions portfolio with high-quality experiential real estate assets in established regional markets.

"These properties embody the essential characteristics we seek: delivering stable, long-term cash flows, strong drive-to accessibility, multi-generational appeal, and significant underlying land value," Silvers said in a statement. "This transaction aligns with our disciplined investment criteria and accelerates our strategic expansion into experiential properties that create enduring value for our shareholders."

Discussion Questions

  1. What is a divestiture?

    A divestiture is the process by which a company sells, spins off, or disposes of a portion of its business or assets to streamline to company’s operations, raise capital, or focus on its core activities. A divestiture is considered the opposite of an acquisition or investment, and serves as a strategic tool to enhance overall business performance and shareholder value.

  2. What is an acquisition?

    An acquisition is a corporate transaction in which one company purchases a controlling interest or the entirety of another company’s shares or assets to gain control and achieve strategic objectives. An acquisition occurs when a company buys another company to take control of its assets, operations, and market position. The acquiring company typically purchases more than 50 percent of the target company’s shares, giving it the authority to make decisions without needing approval from other shareholders.

  3. What does it mean to enhance a liquidity position?

    Companies improve (in other words, “enhance”) their liquidity position by managing their cash flow efficiently, reducing expenses, and increasing their sales revenue. In the subject case, Six Flags’ sale of seven of its amusement parks to EPR Properties includes $331 million in cash, which (for Six Flags) creates cash flow and reduces expenses (although it does not directly increase sales revenue).