Lego sells theme parks to Blackstone, sets up JV |
|
|
Published
:
Fri, 15 Jul 2005 08:05
|
NEW YORK: New York-based private equity firm Blackstone is teaming up with toymaker Lego to own and manage the latter's four Legoland theme parks and its own recently-acquired Merlin Entertainments. Closely-held Lego will sell the theme parks to Blackstone for $547.2 million and a 30 per cent stake in the new venture. Blackstone will hold the balance 70 per cent stake in the company.
Lego's decision to exit the theme parks comes in the wake of the $310.6 million losses it had sustained in 2004, the worst-ever in its 70 years of existence. It wants to concentrate on its traditional core activity, the building blocks and the toys.
Blackstone had acquired Merlin Entertainments in May this year for $187 million. Blackstone also owns half of the Universal Studios theme park in Orlando, Florida.
Merlin has 28 attractions in eight European countries. Its aquarium Sea Life, catacomb experience The Dungeons, and Earth Explorer, which simulates earthquakes and volcanic eruptions, are star attractions for children. The four Legoland theme parks are located in Denmark, Britain, the U.S. and Germany. The unified entity (with Legoland's 12 million visitors annually) will be the Europe's second largest visitor attraction business and the ninth largest operator in the world.
Merlin Entertainments' chief executive Nick Varney will head the new company.
Blackstone's partner Joe Baratta said, "The Merlin assets and Legoland assets are complimentary both geographically and in their target market, which is families with young children. Both businesses have attractions for example in Germany and the U.K."
Lego chief executive Jorgen Vig Knudstorp said the new partnership will create a "formidable new player within the family attractions sector".
Lego had offered its parks for sale in October last year.
|
|
|
|
|
|
Print this Story
