2.3x, 35% IRR
Theme park operator
Palamon acquired the European division of Six Flags, the world’s largest regional theme park operator. The division consisted of seven large format sites located in Germany, Holland, Belgium and France. The group generated revenue of €120 million and EBITDA of €26 million.
Star Parks’ well-located and well-invested asset base would allow capital spending to be concentrated on increasing attendance and profitability of the parks through improving the “family entertainment” nature of the experience. The parks were well-positioned to attract more families, thereby increasing attendance and yields. Particular upside potential was identified in the German park.
With Palamon’s support, the Star Park’s management team embarked on an aggressive three year programme to re-focus the Park to appeal to a broader family audience. The result was a 40% increase in attendance, an almost 50% increase in revenue and a seven-fold increase in profitability.
Following a period of profit growth, six of the seven leisure parks were sold to Compagnie des Alp in 2006 resulting in a 2.4x return on invested capital for Palamon.
Movie Park Germany was sold to Parques Reunidos, providing an overall return on the Star Parks Group of 2.3x times capital invested.