Key facts
- Merlin Entertainments has accepted a £5.9 billion takeover bid.
- The bid comes from Kirkbi, Blackstone, and Canadian pension fund CPPIB.
- The company owns attractions including Madame Tussauds and the London Dungeon.
- The offer values Merlin at 455p per share.
- Kirkbi, the investment vehicle of Lego's founding family, already holds a significant stake in Merlin.
Merlin Entertainments, the company behind attractions such as Madame Tussauds and the London Dungeon, has accepted a £5.9 billion takeover bid from a consortium of investors. The consortium includes Kirkbi, the investment vehicle of Lego's founding family, private equity firm Blackstone, and the Canadian pension fund CPPIB.
The offer values Merlin at 455p per share, representing a 15% increase on the company's share value at the close of trading on Thursday. Kirkbi, which already owns nearly a third of Merlin's shares, has stated its intention to keep all existing Merlin sites in the UK open and has no plans to sell any part of the business.
Merlin Entertainments has a global portfolio of attractions, spanning 25 countries and four continents. The company has experienced significant growth in revenue, earnings, and cash flow since its initial public offering. The independent directors of Merlin believe this offer provides shareholders with an attractive opportunity to realize value for their investment in cash.
Previously, in 2005, Merlin Entertainments, which also runs the Brighton Sea Life Centre, was acquired by Blackstone for £102.5 million. At that time, Blackstone indicated plans to roll out Merlin's brands further across Europe and potentially integrate Legoland into Merlin if their bid for the theme parks was successful. The 2005 deal secured a major profit for seller Hermes Private Equity, which had bought Merlin just 15 months prior for £72.5 million.