Jp
10-07-2009, 10:10 PM
Since nobody posted it!
After months of negotiations, Anheuser-Busch InBev announced this morning that it will sell SeaWorld Orlando-owner Busch Entertainment Corp. to the Blackstone Group for as much as $2.7 billion.
Blackstone, the New York-based private-equity giant, will pay AB InBev $2.3 billion in cash plus give the beer brewer a right to participate in its return on investment up to $400 million.
The deal has sweeping implications both for Orlando and the global tourism industry.
Orlando-based Busch Entertainment is the second-busiest theme-park operator in the United States, with a chain of 10 theme parks that stretches from Pennsylvania to California and draws roughly 25 million visitors a year. It has approximately 10,000 employees in Central Florida alone, where its properties include SeaWorld, Aquatica and Discovery Cove.
Blackstone, meanwhile, already holds a 50 percent stake in Orlando's No. 2 theme-park resort -- and fierce SeaWorld competitor -- Universal Orlando. The buyout firm also owns Merlin Entertainments Group, the British amusement-park operator with properties such as Legoland theme parks and Madame Tussauds Wax Museums.
Blackstone is expected to retain Busch Entertainment's management and operate the company as a standalone investment.
"Blackstone sees tremendous opportunity for investing in leading businesses within the media and entertainment industries, where we have significant expertise," Michael Chae, a senior managing director at Blackstone, said in a prepared statement."We are delighted to be investing in a company with such iconic brands, irreplaceable assets and strong growth prospects. We look forward to working with BEC management in continuing a legacy of delivering world-class family entertainment to our customers."
A-B InBev had been seeking a buyer for its theme parks since completing the $52 billion merger of beer giants InBev and Aheuser-Busch last year. Executives have said they want to sell of non-core assets to use the proceeds to pay down debt stemming from the merger.
"Busch Entertainment Corporation is a high-performing asset with a world-class management team, but not a core business for Anheuser-Busch InBev," A-B InBev's Carlos Brito said in a written statement. "We are pleased to have reached an agreement with a buyer who understands the industry and has a strategic vision for the business. The sale of BEC represents another important milestone in our commitment to de-leverage the company and will also allow us to continue to focus on our core brewing business."
Busch Entertainment President Jim Atchison was to address employees at the company's Orlando headquarters moments after the sale was announced.
"This transaction represents an exciting new chapter for BEC and the thousands of dedicated employees of our team," Atchison said in a written statement. "Blackstone understands our parks are built on an unwavering commitment to quality and a focus on the guest experience. Blackstone is uniquely experienced to help us take the company to new heights, and I look forward to working together to grow this great business."
The sale of Busch parks has been closely watched in financial circles. It is the largest private-equity buyout so far this year.
Source: http://www.orlandosentinel.com/busin...,1554695.story
After months of negotiations, Anheuser-Busch InBev announced this morning that it will sell SeaWorld Orlando-owner Busch Entertainment Corp. to the Blackstone Group for as much as $2.7 billion.
Blackstone, the New York-based private-equity giant, will pay AB InBev $2.3 billion in cash plus give the beer brewer a right to participate in its return on investment up to $400 million.
The deal has sweeping implications both for Orlando and the global tourism industry.
Orlando-based Busch Entertainment is the second-busiest theme-park operator in the United States, with a chain of 10 theme parks that stretches from Pennsylvania to California and draws roughly 25 million visitors a year. It has approximately 10,000 employees in Central Florida alone, where its properties include SeaWorld, Aquatica and Discovery Cove.
Blackstone, meanwhile, already holds a 50 percent stake in Orlando's No. 2 theme-park resort -- and fierce SeaWorld competitor -- Universal Orlando. The buyout firm also owns Merlin Entertainments Group, the British amusement-park operator with properties such as Legoland theme parks and Madame Tussauds Wax Museums.
Blackstone is expected to retain Busch Entertainment's management and operate the company as a standalone investment.
"Blackstone sees tremendous opportunity for investing in leading businesses within the media and entertainment industries, where we have significant expertise," Michael Chae, a senior managing director at Blackstone, said in a prepared statement."We are delighted to be investing in a company with such iconic brands, irreplaceable assets and strong growth prospects. We look forward to working with BEC management in continuing a legacy of delivering world-class family entertainment to our customers."
A-B InBev had been seeking a buyer for its theme parks since completing the $52 billion merger of beer giants InBev and Aheuser-Busch last year. Executives have said they want to sell of non-core assets to use the proceeds to pay down debt stemming from the merger.
"Busch Entertainment Corporation is a high-performing asset with a world-class management team, but not a core business for Anheuser-Busch InBev," A-B InBev's Carlos Brito said in a written statement. "We are pleased to have reached an agreement with a buyer who understands the industry and has a strategic vision for the business. The sale of BEC represents another important milestone in our commitment to de-leverage the company and will also allow us to continue to focus on our core brewing business."
Busch Entertainment President Jim Atchison was to address employees at the company's Orlando headquarters moments after the sale was announced.
"This transaction represents an exciting new chapter for BEC and the thousands of dedicated employees of our team," Atchison said in a written statement. "Blackstone understands our parks are built on an unwavering commitment to quality and a focus on the guest experience. Blackstone is uniquely experienced to help us take the company to new heights, and I look forward to working together to grow this great business."
The sale of Busch parks has been closely watched in financial circles. It is the largest private-equity buyout so far this year.
Source: http://www.orlandosentinel.com/busin...,1554695.story