Merlin Entertainments

Merlin Entertainments Group Ltd

Type	private Ltd
Industry	Amusement Parks
Founded	December 1998
Founder(s)	Nick Varney
Headquarters	Poole, United Kingdom
Key people	Nick Varney (Chairman and Chief Executive) Andrew Carr (Chief Financial Officer)
Products	Gardaland, Alton Towers, Chessington World of Adventures, Thorpe Park, Heide Park, Madame Tussauds, Sea Life Centres, The Dungeons, Seal Sanctuaries, Warwick Castle, EDF Energy London Eye, Legoland
Services	Family Amusement Parks
Employees	13,000 (2007)
Parent	KIRKBI (36%) Blackstone Group (34%) CVC Capital Partners (28%)
Website	www.merlinentertainments.biz

Merlin Entertainments Group Ltd is a British operator of amusement parks and other attractions. It is the largest such company in Europe, and globally the second largest after Walt Disney Parks and Resorts.

Headquartered in Poole, United Kingdom, Merlin Entertainments operates over Seventy attractions in ten European countries, as well as the USA, China, Hong Kong and Australia. Its success has been underpinned by strong partnership arrangements with both public and private sectors, with organisations as diverse as Disney and the Worldwide Fund for Nature.

In 2009, the company's properties hosted an estimated 38.5 million guests, making it the second-most visited theme park operator in the world, behind only Walt Disney Parks and Resorts.^[1]

History

In December 1998, Nick Varney, Andrew Carr and the senior management team of Vardon Attractions completed a management buyout of the company to form Merlin Entertainments Group Ltd. with the backing of the private equity firm Apax Partners. Apax sold the company to another financial investor, Hermes Private Equity, in 2003.

When the Legoland theme parks came up for sale, Varney wanted to buy it but Hermes did not want to invest more capital and sold Merlin to Blackstone Group for about £110 million. Blackstone negotiated to buy control of Legoland for about £250 million and then merged it with Merlin.^[2]

Under Blackstone, Merlin went on to buy Gardaland, an Italian amusement park, and then The Tussauds Group, owner of the Madame Tussauds wax museums, for £1 billion.

The company owns a grand total of 623 attractions. Merlin Entertainments and Tussauds together attracted 30 million visitors during 2007 and employ more than 13,000 staff.

After the Tussauds acquisition, Dubai International Capital held 20% of Merlin Entertainment.^[3]

The buyout of Tussauds was completed on 22 May 2007.^[4] The Tussauds Group as a separate entity has ceased to exist, with control of its attractions, including Madame Tussauds, The London Eye, Chessington World of Adventures, Alton Towers and Thorpe Park, among others, passing to Merlin.

On 17 July 2007, as part of the financing for the Tussauds deal, Merlin sold the freeholds of Alton Towers, Thorpe Park, Warwick Castle and Madame Tussauds to private investor Nick Leslau and his investment firm Prestbury.^[5] Although the attractions are owned by Leslau, they continue to be operated by Merlin, leasing each back on a renewable 35-year lease. Chessington World of Adventures (the fifth Tussaud's attraction) was not included in the deal.

By arranging the sale-leaseback of the properties and giving Dubai International Capital a stake in the combined entity, Merlin was able to acquire Tussauds without the need for any further capital investments from Blackstone or its other shareholders.^[6]

As of 2007^[update], negotiations reopened into the repurchase of Spain's PortAventura resort, which was built by Tussauds in 1994-5 and operated until 1998, when it was sold to Universal Studios. It has since been resold to Spanish banking group La Caixa.

On January 15, 2010, Merlin Entertainments bought closed Winter Haven, Florida-based theme park, Cypress Gardens.^[7]

Merlin had planned to go public in early 2010, but market turbulence postponed those plans. Instead, Blackstone sold 20% of the company to the private equity firm CVC Capital Partners, reducing Blackstone's holding to 34%. CVC acquired another 8% from the Dubai investment fund, giving it 28% in all. KIRKBI, a Danish family trust that owns Lego, also increased its stake, emerging as the largest shareholder, with 36%. CVC paid a price that valued Merlin at £2.25 billion^[8] -- more than six times what Merlin and Legoland together were worth when Blackstone acquired them five years earlier. Blackstone's investment was by that point worth more than three and a half times what it had paid.^[9]

In late 2010, it was announced that Merlin will purchase approximately A$115 million worth of entertainment attractions located in Australia and New Zealand from Village Roadshow Theme Parks and Attractions. The sale will include Sydney Aquarium, Sydney Wildlife World, Oceanworld Manly, Sydney Tower and the Koala Gallery in Australia, in addition to Kelly Tarlton's Underwater World in New Zealand.^[10] On 3 March 2011, the deal was finalised.^[11]

Operations

Resort theme parks

• Alton Towers - The UK's most popular theme park resort, with over 40 rides, shows, two hotels, a water park, conference centre, 18-hole crazy golf, historic woodlands, house, gardens, Sea Life Aquarium and Spa.
• Warwick Castle - the UK's most popular historical castle attraction located in the heart of Warwickshire which is also home to a "Dungeons" branded attraction called "The Castle Dungeon".
• Gardaland - the biggest theme park in Italy, with 40 rides, major shows, Sea Life Aquarium, a hotel and a water park.
• Chessington World of Adventures - a family-orientated theme park and zoo near London
• Thorpe Park - Thrill-focussed theme park near London with over 35 rides and attractions. UK's second most popular theme park.
• Heide Park - Germany's fourth-largest theme park, with 40 rides and attractions, major shows, dolphin displays and a hotel.

Midway attractions

• Madame Tussauds waxwork exhibitions - operating in Amsterdam, Berlin, Hollywood, Hong Kong, Las Vegas, London, New York City, Shanghai, Washington, D.C., Bangkok, Blackpool and Vienna.
• Sea Life Centres -
  • United Kingdom: Blackpool, Brighton, Great Yarmouth, Scarborough, Weymouth, the National Sea Life Centreat Birmingham, Scottish Sea Life Centre at Loch Lomand, Hunstanton seal sanctuary and the Sea Life London Aquarium
  • Germany: Berlin, Hanover, Königswinter, Konstanz, München, Oberhausen, Speyer and Timmendorfer Strand
  • United States of America: Phoenix,^[12] Carlsbad, Dallas (opening 2011), Minnesota, Kansas City (opening 2012)
  • Republic of Ireland: National Sea Life Centre at Bray
  • Spain: Benalmadena
  • Portugal: Porto
  • Belgium: Blankenberge
  • Finland: Helsinki
  • France: Val d'Europe (nr. Disneyland Resort Paris)
  • Holland: Scheveningen
  • Italy: Gardaland, Jesolo (opening 2011)

The attractions can also be found as part of Legoland Billund, Legoland Deutschland, Legoland California, Gardaland Sea Life, Italy, Chessington World of Adventures and Alton Towers.

• Seal Sanctuaries - operate from three centres: the National Seal Sanctuary, Gweek Cornwall; the Hunstanton Sea Life Sanctuary; the Scottish Seal Sanctuary at Oban
• The Dungeons - the London Dungeon and its sister attractions in Edinburgh, York, Hamburg and Amsterdam, with Blackpool coming in October 2011.
• Earth Explorer - a science based attraction, focusing on the way the elements shape our planet, based at Ostend, Belgium
• EDF Energy London Eye - world's third-tallest Ferris wheel and the UK's most visited paid for attraction.
• Pepsi Globe - a Ferris wheel (which, if built, would be America's tallest) planned for the delayed Meadowlands shopping mall project in New Jersey, USA.
• Legoland Discovery Centre - Indoor Legoland parks in Berlin, Germany; Duisburg, Germany, Manchester, United Kingdom, Dallas, Texas and Schaumburg, Illinois, containing amongst other attractions a 'Dragon Coaster' and 4D cinema. Another three Legoland Discovery Centres are set to open in Meadowlands Xanadu, New Jersey, United States in 2011 with Atlanta and Kansas City opening in 2012.
• The Blackpool Tower - Containing the Blackpool Tower Eye, Jungle Jim's, The Tower Ballroom

Legoland parks

• Legoland - A brand Lego-themed theme parks that operate across the globe.
  • Billund, Windsor, California, Deutschland, Florida, Malaysia (2013)

• Other potential Legoland locations include Dubai (2015).

Sydney Attractions Group

• Sydney Aquarium, Sydney Wildlife World, Oceanworld Manly, Sydney Tower and the Koala Gallery in Australia, in addition to Kelly Tarlton's Underwater World in New Zealand.

Hotels & business centres

Merlin owns and operates six hotels across Europe:

• Alton Towers Hotel, Alton Towers, Staffordshire, England
• Splash Landings Hotel, Alton Towers, Staffordshire, England
• Hotel Legoland, Legoland, Billund, Denmark
• Port Royal Hotel, Heide Park, Soltau, Germany
• Gardaland Resort Hotel, Gardaland, Lake Garda, Italy

They also hold the freehold for the Holiday Inn at the following hotel:

• Safari Lodge Holiday Inn, Chessington World of Adventures, Chessington, London, England

Conference facilities are located at:

• Alton Towers Conference Centre, Staffordshire, England

In addition, the group owns and operates the Alton Towers Spa at the Alton Towers Resort. A sixth hotel is planned to open in 2010 at the Gardaland Resort in Italy. The seventh is another LEGOLAND hotel currently under construction at LEGOLAND Windsor (due to open in 2012), first of its kind within the United Kingdom. A hotel is also planned for Thorpe Park in the next few years whilst a new hotel/accommodation is likely for Alton Towers in the next few years as the Alton Towers resort expands opening.^{[citation needed]}

Merlin Products

Merlin have many Annual Pass systems, the primary purpose of them is to offer multiple visits within a one year period, the Annual Passes can either provide entry to one or all attractions.

The Annual Passes covering one attraction are:

• Alton Towers Annual Pass (Standard and Premium)
• SEA LIFE Annual Pass (Standard only)
• Chessington World of Adventures Annual Pass (Standard only)
• Thorpe Park Annual Pass (Standard only)
• Warwick Castle Annual Pass (Standard only)
• LEGOLAND Annual Pass (Standard and Premium)

The Annual Passes covering all attractions within their home country are:

• Merlin Annual Pass - UK (Standard and Premium)
• Merlin Annual Pass - Australia and New Zealand
• Merlin Jahreskarte - Deutschland

Attractions & Products

Attractions The Dungeons London Attractions - The London Dungeons Earth Explorer Gardaland (Italian) (English) Legoland Sea Life Centres Seal Sanctuary The Blackpool Tower

Madame Tussauds The London Eye Alton Towers Heide Park (German) (English) Thorpe Park Chessington World of Adventures Warwick Castle Holiday Inn, Chessington

Products

• Merlin Annual Pass
• Merlin Jahreskarte

References

1. ^ "TEA/ERA Theme Park Attendance Report 2009". www.themeit.com. 2010-04-26. http://teaconnect.org/etea/2009ThemeIndex.pdf. Retrieved 2010-04-27. ^{[dead link]}
2. ^ David Carey and John E. Morris, King of Capital: The Remarkable Rise, Fall and Rise Again of Steve Schwarzman and Blackstone (Crown 2010), pp. 311-12.
3. ^ "Tussauds firm bought in £1bn deal". BBC News. 2007-03-05. http://news.bbc.co.uk/1/hi/business/6419019.stm. Retrieved 2010-05-12. 
4. ^ Merlin Entertainments, leading name in location based, family entertainment - A New Force in Global Leisure^{[dead link]}
5. ^ "Alton Towers sold in £622m deal". BBC News. 2007-07-17. http://news.bbc.co.uk/1/hi/business/6902797.stm. Retrieved 2010-05-12. 
6. ^ King of Capital, p. 313.
7. ^ "Cypress Gardens Sold to Legoland". January 15, 2010. http://www.theledger.com/article/20100115/NEWS/100119831/1410?. Retrieved 2010-01-15. 
8. ^ CVC Capital Partners press release^{[dead link]}, 24 June 2010.
9. ^ King of Capital, p. 314.
10. ^ AAP (17 December 2010). "Village Roadshow sells Sydney Attractions". Sydney Morning Herald. http://news.smh.com.au/breaking-news-business/village-roadshow-sells-sydney-attractions-20101217-19039.html. Retrieved 17 December 2010. 
11. ^ AAP (3 March 2011). "Plans for a Madame Tussauds in Sydney". Sydney Morning Herald. http://news.smh.com.au/breaking-news-business/plans-for-a-madame-tussauds-in-sydney-20110303-1bfzn.html. Retrieved 12 March 2011. 
12. ^ Arizona Republic. “Tempe's Sea Life Arizona shatters 1st-year attendance forecast.” Dianna M. Náñez. January 25, 2011.

External links

• Merlin Entertainments - company website