Blackstone sells SeaWorld stake to Chinese trade buyer

Zhonghong will buy Blackstone’s shares for $23 apiece, a 33% premium to the March 23 closing price. The stock ended March 24 up 4.74% at $18.03, although it is still down more than 11% on a one-year basis. The company has seen visitor numbers fall in recent years and also come in for criticism from animal rights activists over its treatment of animals.

As part of the deal, SeaWorld and Zhonghong have entered into an arrangement whereby the former will advise the latter on the concept development and design of theme parks, water parks and family entertainment centers to be built in China, Taiwan, Hong Kong and Macau. Yoshikazu Maruyama, president of Zhonghong’s US operation added that the SeaWorld brand would be coming to China.

In addition, the Chinese company has agreed not to sell its shareholding in SeaWorld for at least two years and not to increase its stake beyond 24.9% without board approval.

"Zhonghong Group has a strong track record of performance in the leisure and travel industries, and a solid management team with valuable experience in theme parks, family entertainment, and real estate development in Asia," Joel Manby, president and CEO of SeaWorld, said in a statement.

Blackstone bought SeaWorld from AB Inbev in 2009, paying $2.3 billion, of which approximately $1 billion was equity. The investors received $610 million in dividends in 2011 and 2012 and then took the company public in 2013. SeaWorld raised $702 million through the IPO, pricing its shares at $27 apiece, and Blackstone sold $537.3 million worth of shares. It retained a 63% stake that was pared over time.

SeaWorld has built 12 theme parks across the US and owns or licenses brands such as SeaWorld, Busch Gardens and Sea Rescue. These parks received 22.5 million guests in 2015, up from 22.4 million in 2014 but down from 23.4 million the year before that. Revenue came to $1.37 billion in 2015 compared to $1.38 billion the previous year, while net profit fell to $49.1 million from $49.9 million over the same period.

Founded in 1993, Zhonghong has interests spanning real estate, leisure, culture, and tourism. Recent international acquisitions include luxury tour operator Abercrombie & Kent. The company is also said to have been involved in PAG Asia Capital’s unsuccessful $3.2 billion bid for DreamWorks Animation last year.

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• Topics
• Greater China
• North America
• Trade sale
• Media
• Real estate
• China
• USA
• The Blackstone Group
• Exit
• Consumer