Cedar Fair Adds 5 Parks

Article Excerpt

CEDAR FAIR, L.P. $26.39 (New York symbol FUN; SI Rating: Average) now operates seven amusement parks in the U.S. The company plans to add to that total with the purchase of five Paramount amusement parks from CBS Corp. for $1.24 billion. The new parks do not overlap with Cedar Fair’s seven current parks, and should increase its annual revenues by 75%. It also gives it more parks that stay open year-round, as well as a park near Toronto, its first outside the U.S. Savings from the merger should also give it more cash for distributions. But the company will probably wait until it fully integrates the new parks before raising its current annual rate of $1.88, which yields 7.1%. Cedar Fair is still a buy. buy…

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