Well-Known UK Attractions Company Bought by Famous Investors

Merlin Entertainments, a famous UK entertainment and attractions company, will be bought by The Lego Group and other investors. Kirkbi Invest, Lego’s private investment company, will buy Merlin for $5.9 billion. This acquisition is in collaboration with Blackstone, a US-based private equity company, and the Canada Pension Fund Investment Board. According to Kirkbi’s CEO, the acquisition would entail Merlin’s private ownership and ensure its growth through the investors’ support. Following the buyout, reports showed that Merlin’s shares rose to 14%, giving the company a total market value of $7.5 billion. Established in 1999, Merlin Entertainments is the world’s second-largest operator of attractions, with over 130 sites in 25 countries under its name. Merlin’s portfolio includes famous observation wheel the London Eye, wax museum Madame Tussauds [tu-SODZ], and theme park resort Alton Towers. According to reports, around 67 million people visited Merlin’s attractions in 2018. Back in 2005, Merlin bought the Legoland theme parks from Lego. Currently, the entertainment company owns and runs eight Legoland parks, with plans to increase this figure to 20. Despite the success it faces today, Merlin struggled with some setbacks before. In 2015, one of the roller coasters in Merlin’s Alton Towers crashed, resulting in 16 people getting injured and a fine of $6.2 billion. The company’s profits also suffered a major blow in 2017 due to inclement weather and external threats in London. Because of the losses Merlin suffered, an analyst pointed out that the company’s $5.9 billion buyout price is lower than its supposed value two years ago.