Zhonghong Group buys 21% stake in SeaWorld with plans to bring brand to China
SeaWorld Entertainments biggest shareholder, Blackstone, is selling its 21% stake in the theme park operator to Chinese investors Zhonghong Zhuoye Group.
The deal, worth hundreds of millions of dollars, includes an agreement that SeaWorld will exclusively advise Zhonghong Group on the design and development of future themed entertainment destinations, including theme parks, waterparks and family entertainment centres, in China, Taiwan, Hong Kong and Macau.
Commenting on the deal, SeaWorld Chief Executive Joel Manby stated “Zhonghong Group is making a significant, long-term investment in SeaWorld, reflecting their appreciation of the strength of our brand, our potential to grow the company and a shared commitment to protect wildlife and the environment.
“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.”
In early March, Manby said financial discipline was a top priority for the embattled operator, after end of year results saw both revenue and attendance decline on 2015 figures.
The deal will also see two Zhonghong Group executives joining SeaWorld’s board of directors, Yoshikazu Maruyama, President of the firm’s US operations, and Chief Strategy Officer Wang Yongli, who will offer “substantive expertise in global themed entertainment and business development in China”.
Blackstone, who bought into SeaWorld for US$2.3 billion in 2009, is selling to Zhonghong Group at a price of US$23 per share. The New York-based investment firm took SeaWorld Entertainments public in 2013, but has reduced its stake in the years since.
Maruyama stated “we are delighted to engage with SeaWorld to bring this iconic, world-class family entertainment brand to China. SeaWorld’s commitment to inspiring guests to protect animals and our oceans is increasingly relevant to people all around the world.
“Zhonghong Group hopes to contribute our experience and resources in global tourism and project development to enhance long-term value to all of SeaWorld's shareholders. We look forward to a highly collaborative relationship and to serve as a key partner to grow its business and further its mission.”
In January, SeaWorld announced that it was partnering with United Arab Emirates developer Miral to develop a marine theme park on Abu Dhabi’s Yas Island (pictured) - the first SeaWorld outside of the USA.
Queensland's Sea World is a separate venuture.
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