Author Topic: Cedar Fair to be Sold? (Read 6069 times)

wof205 · « **Reply #30 on:** Dec 24, 2009, 06:53 »

There were multiple interviews in the Sandusky Register that Dick states Apollo is willing to keep him on as CEO, and that he will serve as Chairman of a newly created (by Apollo) board of directors. He will also have the option to extend his contract, but as of now, it has not yet been extended, and both parties must agree to it. Do I think that once this deal goes through (if it goes through) he will remain as CEO...no. Looking at Apollo's track record, I think that once the 2010 season is put to bed they will most likely buy him out and (hopefully) bring someone in from the outside.

Do I think that Kinzel is a bad guy...no. I think he's way past his prime, and that he (and his team) got Cedar Fair into a predicament they just weren't prepared to handle. His "What Would Cedar Point Do?" attitude worked well as a smaller company, but after the Paramount purchase, they tried to expand that mentality, and it just hasn't worked. Not to mention the fact that he (and his team) want to keep running the parks as if it was the 1960's. One good thing about the Paramount puchase was implementing many of their IT and technology systems to make the parks more efficient and employee friendly.

Swoosh · « **Reply #31 on:** Dec 24, 2009, 07:12 »

Quote from: Orient Wolf on Dec 23, 2009, 11:42

^Could you please provide a source for this information? It would seem difficult for Apollo to extend his contract when they technically don't even own the company yet.

I did provide the link above -- the conference call with Sandusky's newspaper.

He was contracted through 2011 and they offered him an additional year.
...and while it is not "finalized" - it's finalized. This is a done deal.

wof205 · « **Reply #32 on:** Dec 24, 2009, 07:59 »

unless the stockholders don't approve it...which most of them probably will (if they were smart)

tonyblackjack · « **Reply #33 on:** Dec 25, 2009, 09:43 »

Apollo has been open about the fact that they like the way Cedar Fair is being run and that most Cedar Fair Management will stay in tact. I saw that somewhere on Screamscape. I am not sure why you are quick to run Kinzel out. Buying the Paramount Parks seemed like a good idea to them at the time and the economy tanked. You can't predict that.

wof205 · « **Reply #34 on:** Dec 25, 2009, 01:21 »

It's not that I want to run him off, I just think its time for him to move on, and I think that if Falfas takes over after him, he is going to run the company into the ground. The amount of micro-management that goes on in the Cedar Fair company is unnecessary. Nothing can happen quickly because everything (and I do mean everything, from operating calenders/budgets to uniform colors to merchandise) has to be approved by Dick or Jack.

The Paramount purchase was good in the fact that if nearly doubled the size of the company, and really turned Cedar Fair into more of a household name than it had ever been before. However, Dick and team though they could run everything just like they run Cedar Point, but it just doesn't work like that. In an effort to streamline everything (i.e.-purchasing, supplies, etc.) they've began choosing quantity over quality. There is alot more going on behind the scenes than most people know, and it's not nearly as rosy as upper management would like you to think it is.

Bradley Robertson · « **Reply #35 on:** Dec 28, 2009, 11:28 »

Quote from: wof205 on Dec 25, 2009, 01:21

There is alot more going on behind the scenes than most people know, and it's not nearly as rosy as upper management would like you to think it is.

While I am sure there is some truth to what you are saying, but does that really surprise you? I would guess this applies to most publicly traded companies. There is a reason they are upper management. They have mastered the art of BS.

jlovesee · « **Reply #36 on:** Dec 30, 2009, 09:07 »

Quote from: wof205 on Dec 25, 2009, 01:21

It's not that I want to run him off, I just think its time for him to move on, and I think that if Falfas takes over after him, he is going to run the company into the ground. The amount of micro-management that goes on in the Cedar Fair company is unnecessary. Nothing can happen quickly because everything (and I do mean everything, from operating calenders/budgets to uniform colors to merchandise) has to be approved by Dick or Jack.

The Paramount purchase was good in the fact that if nearly doubled the size of the company, and really turned Cedar Fair into more of a household name than it had ever been before. However, Dick and team though they could run everything just like they run Cedar Point, but it just doesn't work like that. In an effort to streamline everything (i.e.-purchasing, supplies, etc.) they've began choosing quantity over quality. There is alot more going on behind the scenes than most people know, and it's not nearly as rosy as upper management would like you to think it is.

I completely agree with everything you just said.

Jennifer

Jason · « **Reply #37 on:** Jan 29, 2010, 09:56 »

It looks more and more like the Apollo deal is going to fail. A new investor has stepped in and is making some noise but nobody seems to know their intentions.

http://www.benzinga.com/markets/company-news/101776/cedar-fair%E2%80%99s-acquisition-takes-an-interesting-turn-fun

Swoosh · « **Reply #38 on:** Jan 29, 2010, 04:24 »

hmm.... FAIL :\

Jason · « **Reply #39 on:** Feb 9, 2010, 12:38 »

The new investment firm has continued to grow it's ownership share. It will be interesting to see what they do once the vote fails.

Swoosh · « **Reply #40 on:** Feb 10, 2010, 09:17 »

I'd say that this Apollo thing will just have to go away. It is very obvious that the investors are not interested in a hostile take over and Cedar Fair will just have to continue to work on paying off the debt themselves.

Jason · « **Reply #41 on:** Feb 10, 2010, 09:22 »

I'm not sure that I follow you there. Are you assuming that the Apollo deal is a hostile take over?

Swoosh · « **Reply #42 on:** Feb 10, 2010, 10:51 »

Well it is very obvious (to me) that Apollo approached the board about buying the company without first discussing this with the investors. Basically the investors found out about this the same time everybody else did. The investors did not ask for a buyout to even be considered thus it is a hostile take over.

Jason · « **Reply #43 on:** Feb 10, 2010, 11:58 »

You've got it backwards. Cedar Fair management sought out buyers and Apollo was chosen. The vote that's coming up is their way of discussing it with the investors. Since the investors have a say it's not very hostile.

A hostile take over would involve a company buying their way into a majority and then kicking all of the current management out.

Swoosh · « **Reply #44 on:** Feb 10, 2010, 01:34 »

Well technically that's kind of what Apollo wants to do -- buy off all the investors.

Jason · « **Reply #45 on:** Feb 10, 2010, 01:36 »

I agree but their being asked to do it.

Bradley Robertson · « **Reply #46 on:** Feb 24, 2010, 12:58 »

Anyone else get their proxy voting ballots? I don't plan on responding but the book was sorta neat since it had the Cedar Fair logo on it.

Jason · « **Reply #47 on:** Mar 10, 2010, 07:25 »

Here's a strange twist. There's speculation that Apollo wants to merge Cedar Fair with Six Flags. It looks highly likely that the sale won't go through so it probably won't matter in the end. It would be nice for the traveling season pass holder though.

You have to have a subscription to see the whole story.

http://online.wsj.com/article/BT-CO-20100309-715968.html?mod=WSJ_World_MIDDLEHeadlinesAmericas

Bradley Robertson · « **Reply #48 on:** Mar 10, 2010, 08:39 »

If you use this link you can read it: http://www.google.com/search?q=Six+Flags+Creditors+See+Signs+Of+Merger+With+Cedar+Fair+&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a

Bradley Robertson · « **Reply #49 on:** Mar 17, 2010, 10:43 »

Merger isn't looking good at this point. I would think most investors would balk at $11.50 price since it is now trading over $12. The price has jumped a dollar since Cedar Fair announced on Monday that the vote is now being delayed to April 8th.

Jason · « **Reply #50 on:** Mar 17, 2010, 06:16 »

It looks like the large investors out of Texas are in it for the long haul and one would assume that they are wanting to influence change. They came out against the possibility of Apollo raising the asking price.

Bradley Robertson · « **Reply #51 on:** Mar 17, 2010, 10:22 »

I'm sure it doesn't help that shareholders votes are by default "No." Non-responses are counted as votes against the merger.

Jason · « **Reply #52 on:** Mar 18, 2010, 06:09 »

It didn't look like would have passed even if most of the small holders voted yes though. The big firms were against it and the two largest made up 24%.

It's be an interesting story for sure.

Swoosh · « **Reply #53 on:** Mar 18, 2010, 08:24 »

I'm just afraid that if it doesn't pass then that means they'll start pursuing selling off parks again, only this time a little more heavily.
Either way (imho) is not good news

Jason · « **Reply #54 on:** Mar 18, 2010, 01:42 »

That is certainly a possibility. The argument to it would be a park like WoF wouldn't sell for nearly enough to even make a dent in their debt.

Jason · « **Reply #55 on:** Apr 6, 2010, 06:34 »

The deal is dead. The merger will not happen.

http://www.rttnews.com/Content/QuickFacts.aspx?Node=B1&Id=1261354%20&Category=Quick%20Facts

AyTrane · « **Reply #56 on:** Apr 6, 2010, 08:42 »

Quote

Consistent with the deal terms, the company would pay Apollo $6.5 million to reimburse Apollo for certain expenses incurred in connection with the transaction.

Hmm, maybe I should make an offer that will fall through so I can get paid $6.5 million for my troubles. That money could have bought a new roller coaster (or paid one off).