Fred
26-07-2008, 09:16:PM
Anheuser-Busch theme parks face possible sale
Analysts see InBev spinning off assets that aren't part of core business
SAN FRANCISCO (MarketWatch) -- When InBev launched its takeover of Anheuser-Busch Cos., it vowed a secure future for the company's 12 U.S. breweries.
Things are a little less certain for Shamu the killer whale, SeaWorld's star performer.
Including its three SeaWorld parks, the St. Louis beermaker owns 10 theme parks nationwide, lumped together as the Busch Entertainment Corp.
Every one of them is a noncore asset that could end up on the block after Anheuser-Busch's (BUD:Anheuser-Busch Companies, Inc
board agreed Sunday to be acquired by InBev in a $52 billion deal the two hope to complete before the end of the year.
InBev (BE:000379310: news, chart, profile) spokeswoman Marianne Amssoms said the company had not yet decided what to do with the theme parks, but that they "are very mindful of their important role in those communities and will seek to help preserve that role."
The future is uncertain for Shamu the killer whale, SeaWorld's star performer.
Belgium-based InBev, known for building its international brewery empire through acquisitions and cost-cutting, could choose to spin off BEC to pay down part of the massive loan it took out to buy Anheuser-Busch.
Dennis Spiegel, president of International Theme Park Services Inc., said that because of the parks' good margins and pristine condition, he expects the whole lot to hit the market and sell for $3.5 billion to $4 billion.
He said that either way, he thinks BEC's parks would have ended up sold -- whether it was because InBev sold them to pay on their loan or because A-B would need the money to defend itself from InBev's bid.
"These properties will not be put at a fire-sale level by InBev, nor would they have if they had been sold by Anheuser-Busch," Spiegel added. "If you would have told me a year ago that SeaWorld would have been spun off, I would have said 'What have you been smoking?'"
An international suitor or private-equity group will be most likely to buy the parks, according to Spiegel.
"Certainly Cedar Fare and Six Flags have their own issues, and it doesn't look like it's something that Disney would do -- they typically don't buy other brands -- and Universal is not in the market to be expanding," he commented. "I think whoever gets them will hang onto them."
The future of four BEC amusement parks slated to open in Dubai in 2012 is also uncertain. An Anheuser-Busch spokeswoman said she couldn't comment, recommending it was "best to check with InBev on their future."
BEC currently has amusement parks in California, Florida, Pennsylvania, Texas and Virginia.
BEC has been successful in the past, drawing about 22 million visitors a year and posting profits of $162.9 million in 2007, $144.3 million in 2006 and $127.7 million in 2005.
But during what Spiegel called a "perfect storm" slapping theme parks -- soaring energy and oil prices and a dwindling economy -- BEC posted $3.8 million loss in the first quarter of 2008.
The industry hopes those same economic doldrums will cause people to shy away from longer vacations and instead make visits to their more local theme parks, Spiegel said.
Anheuser-Busch agreed Sunday to a takeover by InBev that will create the world's largest beermaker. See full story.
While InBev said that it plans to keep all 12 of Anheuser's U.S. breweries going, it has kept quiet about what will happen to the company's other assets.
Shares of Anheuser-Busch closed Monday up 0.56%, or 37 cents, to $66.87 a share on the New York Stock Exchange.
Analysts see InBev spinning off assets that aren't part of core business
SAN FRANCISCO (MarketWatch) -- When InBev launched its takeover of Anheuser-Busch Cos., it vowed a secure future for the company's 12 U.S. breweries.
Things are a little less certain for Shamu the killer whale, SeaWorld's star performer.
Including its three SeaWorld parks, the St. Louis beermaker owns 10 theme parks nationwide, lumped together as the Busch Entertainment Corp.
Every one of them is a noncore asset that could end up on the block after Anheuser-Busch's (BUD:Anheuser-Busch Companies, Inc
board agreed Sunday to be acquired by InBev in a $52 billion deal the two hope to complete before the end of the year.
InBev (BE:000379310: news, chart, profile) spokeswoman Marianne Amssoms said the company had not yet decided what to do with the theme parks, but that they "are very mindful of their important role in those communities and will seek to help preserve that role."
The future is uncertain for Shamu the killer whale, SeaWorld's star performer.
Belgium-based InBev, known for building its international brewery empire through acquisitions and cost-cutting, could choose to spin off BEC to pay down part of the massive loan it took out to buy Anheuser-Busch.
Dennis Spiegel, president of International Theme Park Services Inc., said that because of the parks' good margins and pristine condition, he expects the whole lot to hit the market and sell for $3.5 billion to $4 billion.
He said that either way, he thinks BEC's parks would have ended up sold -- whether it was because InBev sold them to pay on their loan or because A-B would need the money to defend itself from InBev's bid.
"These properties will not be put at a fire-sale level by InBev, nor would they have if they had been sold by Anheuser-Busch," Spiegel added. "If you would have told me a year ago that SeaWorld would have been spun off, I would have said 'What have you been smoking?'"
An international suitor or private-equity group will be most likely to buy the parks, according to Spiegel.
"Certainly Cedar Fare and Six Flags have their own issues, and it doesn't look like it's something that Disney would do -- they typically don't buy other brands -- and Universal is not in the market to be expanding," he commented. "I think whoever gets them will hang onto them."
The future of four BEC amusement parks slated to open in Dubai in 2012 is also uncertain. An Anheuser-Busch spokeswoman said she couldn't comment, recommending it was "best to check with InBev on their future."
BEC currently has amusement parks in California, Florida, Pennsylvania, Texas and Virginia.
BEC has been successful in the past, drawing about 22 million visitors a year and posting profits of $162.9 million in 2007, $144.3 million in 2006 and $127.7 million in 2005.
But during what Spiegel called a "perfect storm" slapping theme parks -- soaring energy and oil prices and a dwindling economy -- BEC posted $3.8 million loss in the first quarter of 2008.
The industry hopes those same economic doldrums will cause people to shy away from longer vacations and instead make visits to their more local theme parks, Spiegel said.
Anheuser-Busch agreed Sunday to a takeover by InBev that will create the world's largest beermaker. See full story.
While InBev said that it plans to keep all 12 of Anheuser's U.S. breweries going, it has kept quiet about what will happen to the company's other assets.
Shares of Anheuser-Busch closed Monday up 0.56%, or 37 cents, to $66.87 a share on the New York Stock Exchange.