PRINT THIS PAGE US Blackstone acquires LEGOLAND Parks for €375m14/07/2005. Source: AltAssets. 
 US-based The Blackstone Group has acquired LEGOLAND Parks for €375m. The deal includes LEGOLAND's four family theme parks in the UK, Germany, California and Denmark.
Blackstone intends to combine LEGOLAND with European visitor attractions operator Merlin, the company it bought from Hermes Private Equity for £102.5m a few weeks ago. Once merged the new business will be called Merlin Entertainments Group. Following the transaction Blackstone and management will have a 70 per cent share in the new Merlin Entertainments Group, while the Billund, Denmark-based LEGO Group will hold 30 per cent.
Joseph Baratta, a senior managing director of Blackstone, said, 'We are delighted that we have been able very quickly to execute our strategy of building a leading theme park and attractions business in Europe. We believe that Merlin, led by Nick Varney and his excellent team, is an ideal platform from which to build a terrific business of scale in this sector. The combination of LEGOLAND and Merlin creates a unique asset in the leisure industry.'
'We are particularly pleased to have as a significant partner in this business a world class company such as the LEGO Group. The LEGO Group's continued involvement with the business will be helpful in realising our growth objectives, and displays the LEGO Group's strong conviction about the prospects for the combined company,' Baratta added.
Kjeld Kirk Kristiansen, LEGO Group owner, explained, 'The toy market has been declining for some time and is extremely competitive. To consolidate its position, the LEGO Group chose to sell its majority holding in the LEGOLAND Parks in order
to focus on closer relations with our customers and consumers, improved marketing, and a greater emphasis on core products.'
Nick Varney, chief executive of the new combined Merlin Entertainments company, added, 'LEGOLAND has a very strong brand and operating franchise, with excellent staff at all levels. The new company will provide the investment and expertise the parks need - in both product and marketing - to take them to the next level. It also offers tremendous opportunities to leverage market advantage with joint promotional and development activities in the future.'
Blackstone's other investments in the leisure sector have included Universal Studios in Orlando and Six Flags Theme Park. In addition to private equity investing, Blackstone's core businesses are private real estate investing, corporate debt investing, marketable alternative asset management, corporate advisory, and restructuring and reorganisation advisory. Blackstone has offices in New York, Atlanta, Boston, Los Angeles, London, Hamburg, Paris and Mumbai.
Copyright © 2005 AltAssets
|
