Legoland Windsor Resort

[Kaz]

BlackStone Say:

THE PERFECT COMBINATION - MERLIN AND TUSSAUDS - CREATING THE WORLD’S NO 2 VISITOR ATTRACTION COMPANY
London, New York, Dubai – Monday 5th March 2007: 8.30am (UK)
Merlin Entertainments Group (“Merlin”), controlled by the Blackstone Group (“Blackstone”), and The Tussauds Group (“TTG”), controlled by Dubai International Capital LLC (“DIC”), are today announcing a partnership of two rapidly growing businesses. This brings together some of the biggest brand names in the global theme park and attractions market and positions the combined Merlin Entertainments Group as the world’s second biggest visitor attractions operator after Disney.
DIC will receive £1,028 million cash and retain a 20% stake in the combined company, investing alongside majority owner Blackstone and LEGO Holding/KIRKBI Groups.
Transaction highlights:
• Merlin Entertainments Group and The Tussauds Group combined welcomed over 30 million visitors to their 50 attractions and four hotels in 2006. Globally they operate in 12 countries and across three continents (Europe, North America, Asia); employing over 13,000 staff
• Combines some of the world’s best-known attractions brands, including Madame Tussauds, LEGOLAND, SEA LIFE, British Airways London Eye, Gardaland
• Enlarged portfolio of market-leading, resort-led theme parks, including Alton Towers in the UK; Gardaland in Italy; and the four LEGOLAND parks in USA and Europe
• Expanded management team will see Merlin’s Chief Executive, Nick Varney, as CEO of the enlarged group, with Tussauds’ Chief Executive Peter Phillipson becoming non-executive Chairman of the enlarged group; Merlin’s Andrew Carr as Chief Financial Officer of the enlarged group; and Tussauds’ CFO Rob Roger leading the integration project. Other senior appointments will be announced in due course
Commenting on the transaction, Merlin’s Chief Executive Nick Varney said, “The combination of the Merlin and Tussauds brands, people, and operating expertise will create an exciting and world-beating global entertainment company. With such iconic brands, the expanded Merlin will not only have strong development potential, but also an amazingly robust and high value portfolio. Our ambition is to build on this to become the world leader in location based, branded, family entertainment.
“The deal is a major strategic move for Merlin which has already seen the most successful and dynamic growth in the sector over the last five years. It not only expands our business both geographically and demographically, but also underlines our objective to build a balanced portfolio. The combined Group also has the resources and expertise to focus on accelerating current expansion plans for all the brands, particularly in North America.”

Commenting, Peter Phillipson, Tussauds’ Chief Executive said "Under DIC’s ownership, we have continued to make significant progress against our strategic objectives. We have acquired the British Airways London Eye, continued the international roll out of Madame Tussauds, and the construction of hotels at Chessington and Heide Park is progressing well.
“Joining forces with Merlin represents a very exciting opportunity to develop these brands as part of the world's second largest visitor attractions business. The combined group will be in an excellent position to continue the development of
The London Eye and our theme parks, as well as accelerate the rollout of Madame Tussauds around the world. I am very much looking forward to working closely with Nick Varney to build a great business for our staff, customers and shareholders.”
Merlin is majority owned by Blackstone who purchased the company for £102 million in May 2005. Since then it has worked with management to complete the acquisitions of the LEGOLAND chain of theme parks (August 2005) and Italy’s biggest theme park, Gardaland (October 2006).
Commenting, Joseph Baratta, a Blackstone Senior Managing Director, said “We are proud and pleased to have been able to support Merlin management in building this extraordinary business. This situation is a perfect example of the benefits of private equity ownership. Both Merlin and The Tussauds Group have grown significantly as a result of the support of their private equity owners. Blackstone and DIC have made substantial capital investments in these companies over the last few years and have enabled them to become market leaders. We believe the combination of Merlin and The Tussauds Group creates a European champion in the global leisure industry. Blackstone and the LEGO Holding/KIRKBI Groups welcome our partnership with DIC.”
Sameer Al Ansari, Executive Chairman and Chief Executive Officer of Dubai International Capital, said: "We are pleased with today's announcement. It is in line with DIC’s strategy that involves backing incumbent management and investing in the businesses we acquire. As responsible long-term investors, we believe that this is an excellent deal for Tussauds. Under DIC’s ownership and within two years, Tussauds business has grown significantly, making the Tussauds brand a truly global one.
“This deal is a natural evolution for the Tussauds Group as the combined firm will become the world's second largest leisure operator. We are looking forward to partnering with Blackstone and LEGO Holding/KIRKBI Groups to help the business take the next step in its development. Tussauds and Merlin are very complementary businesses and there is an obvious commercial logic in bringing them together. As a reflection of our confidence in this deal, DIC will retain 20% of the larger business and we hope to share in the benefits of its future profitable growth."
- ends -
For further information contact:
Merlin Entertainments + 44 1202 666 900
Nick Varney, Chief Executive
Penny King /Sally Ann Wilkinson + 44 20 8948 4225 or
+ 44 7887 542 490/
+ 44 7774 415 372

The Blackstone Group +44 20 7451 4276
Joseph Baratta
The Tussauds Group +44 20 7404 5959
Peter Phillipson, Chief Executive
Robert Roger, Chief Financial Officer
Citigroup +44 20 7986 7012
Anthony Gutman
Brunswick +44 20 7404 5959
Simon Sporborg / Jemma Hill
Dubai International Capital LLC
Hazar Al-Zaki +971 4 362 1840
Brunswick +44 20 7404 5959
Craig Breheny / Ash Spiegelberg
Please note:
For interview requests with Merlin Entertainments Group please contact
Penny King/Sally Ann Wilkinson on + 44 20 8948 4225 or + 447887 542 490 /
+ 44 7774 415 372 respectively
Photographs of Merlin key personnel and the attractions are available from Penny King or visit the Merlin website at:
http://www.merlinentertainments.biz/en/ ... tures.aspx.
Broadcast quality footage of Merlin attractions is also available. More detailed company backgrounders will be supplied on request.
Notes to Editors
1. The major shareholder of the combined company will be Blackstone, with DIC, LEGO Holding/KIRKBI and management team retaining significant minority investments
2. Debt financing has been committed by Goldman Sachs, HVB and Lehman Brothers. The combined group will be refinanced following the close of the transaction
3. The transaction is subject to regulatory approval
4. Blackstone was advised by Goldman Sachs
5. Merlin were advised by Lehman Brothers and UBS
6. DIC and Tussauds were advised by Citigroup
About Merlin Entertainments
Merlin Entertainments is a leading visitor attraction operator in Europe, and has seen the most successful and dynamic growth in the sector over the last five years – both through organic roll-out, and by strategic acquisition. It operates 38 attractions across 11 countries under the LEGOLAND, LEGOLAND Discovery Centre, SEA LIFE, Gardaland, Dungeon, Earth Explorer brands. In 2006 Merlin welcomed over 16 million visitors to its attractions;

and the company has an EBITDA which has risen by over 10 times in the same period (18% in 2006 alone - excluding acquisition)
Merlin’s attractions appeal to a broad customer base of families, teens and young adults. The group operates in the following countries: UK, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Netherlands, Spain, USA.
About The Tussauds Group
The Tussauds Group is one of Europe’s leading visitor attraction businesses and has achieved compound organic EBITDA growth of over 14% over the last six years. This has been supplemented by the rollout of Madame Tussauds, and acquisitions of The British Airways London Eye and Heide Park resulting in EBITDA compound growth of 21%. In 2006 the Group achieved around £100m of EBITDA. Over the period, under Charterhouse and DIC’s ownership, Tussauds has increased employment from around 2000 employees to over 6000 employees, and consistently improved both staff and customer satisfaction scores. Tussauds attracts over 14 million visitors a year to its famous attractions around the world.
The Tussauds Group consists of City Centre Attractions (Six Madame Tussauds – London, New York, Amsterdam, Las Vegas, Shanghai, Hong Kong; The British Airways London Eye and Warwick Castle); and Theme Parks (Alton Towers; Thorpe Park; Chessington World of Adventures in the UK and Heide Park in Germany).
About The Blackstone Group
The Blackstone Group, a global private investment and advisory firm, was founded in 1985. The firm has raised a total of more then $67 billion for alternative asset investing since its formation of which approximately $30 billion has been for private equity investing. The Private Equity Group is currently investing its fifth general private equity fund with commitments of $15.6 billion, and has 78 experienced professionals with broad sector expertise. Other private equity investments in the leisure sector have included Universal Studios in Orlando, and Six Flags Theme Park. Blackstone’s other core businesses include Private Real Estate Investing, Corporate Debt Investing, Hedge Funds, Mutual Fund Management, Private Placement, Marketable Alternative Asset Management, and Investment Banking Advisory Services
About Dubai International Capital LLC
Established in 2004, Dubai International Capital LLC (DIC) is a Dubai-based international investment company. It is a wholly owned subsidiary of Dubai Holding. DIC manages an international portfolio of diverse assets that provide its stakeholders with value growth, diversification, and strategic investments and relationships.
DIC’s investments have included: US$ 1.23 billion acquisition of Travelodge (UK), Britain’s fastest growing hotel company, US$ 1 billion stake in DaimlerChrysler, the world’s second largest carmaker and the US$ 1.2 billion acquisition of Doncasters Group (UK), an industrial manufacturing firm that produces precision engineering components across various industrial sectors.
DIC is a substantial investor in the Middle East. Investments include Ishraq, a US$150 million investment company that was formed to bring the Holiday Inn Express brand of hotels to the Gulf Co-operation Council (GCC) countries; and MENA Infrastructure Fund, a US$500 million fund targeting investment opportunities in infrastructure projects in the Middle East and North Africa region. In 2005, DIC launched Jordan Dubai Capital, a $300 million investment company that targets private equity opportunities in the Jordanian economy.
Additional information about Dubai International Capital is available at: www.dubaiic.com

About LEGO Group
The LEGO Group is a privately held, family-owned company, based in Billund, Denmark. It was founded in 1932 and today the group is one of the world's leading manufacturers of play materials for children, employing approximately 4,500 people globally. The LEGO Group is committed to the development of children's creative and imaginative abilities. LEGO products can be purchased in more than 130 countries. LEGO and the LEGO logo are trademarks of The LEGO Group. ©2006 The LEGO Group.

[Crofty]

May I also view my opinions on the people who are going “There only in it for the money” and smirk at them. These people simply do not understand the workings of a business. Who ever take over Tussauds aim is going to be to maximise the total revenue, they don’t do it for fun do they? Businesses are there to make money therefore you can’t slate one for doing just that. That’s just totally pointless.

Of course all businesses are in it for the money, the point is Investment businesses are nearly always in it for the Short-term money. merging call centres brands and general cutting of costs is what we normally see. Once this iis done then they can make a quick buck and get out with the profits.
This is great if your in that Business but not so great if you don't get any long term investment.

I thought DIC would be around for the long term, turns out they are just as bad. IMO Tussuads needs to be run as a PLC this gives long term commitment to the parks.

[Jon]

Judging by the information given, there isn't actually much about the park itself are changing. Assuming that the people who actually deisgn and produce the ride will still more or less have the same people hired, the fact that the companies name isn't really relavent. Unless Merlin will have total control over all the details from groundbreaking project sharks, dolphins, whales, octopuses, and all equatic life in general, to things like making sure a certain wonky sign in the entrance plaza is removed I doubt there will actually be a great deal of difference. Yes, the funding and materials may indeed alter for the better as it will be a massive company, which way lead to better developments, but at the end of the day its not these people that make the themeparks magical.

My initial response to the letter that is was going to be another large company buying out others and making them all the same in a way

(if anyone has seen that episode of South Park where they all get posessed by the Wall Marts you can see why I am paranoid...)

Disney Parks are a massive chain, but it was a company of films beforehand so of course their parks are going to be of an extraordinarily high standard. But when you look at disney parks, they are practically all the same, all with the same label. In this case, that's a great thing as you know when you visit any disney park you will have a top class day out. In this instance, however, I can't see an ever growing company taking over others being a huge improvement if you ask me. I hope against hope they keep the tussauds label.

Just my ideas, I'm sure it won't effect it much.
And "Merlin" is quite a nice magical name I suppose.
Onwards and upwards!
As long as they don't produced mucked up rides like the DICheads :P

[Green.Wing]

Hopefully more investment now . But now there is like 3 companys all involved with either Alton or tussards. just hope there is no clash of heads.

[Adam]

Well, this has sure pis*ed on my fire....

I guess as long as they don't invest less then already is, it will probably just be the same, maybe with the added bonus of new attractions added to Dream Tickets and season Passes.

*Adäm x

[Joel]

Code: Select all

Connected to whois.nic.uk

     No match for "merlintimes.co.uk".
 
     This domain name has not been registered.
 
     WHOIS lookup made at 21:13:25 05-Mar-2007

*sniggers*

[Adam]

Hehe, doesn't quite have the same ring does it...

*Adäm x

[iriderides101]

Seems interesting but reding it off thorpe park mania it seems we could see better investment in themeing and cleaniness

[haydn!]

I really think alot of you are expecting more from this than there ever will be.

A few questions you need to ask yourselves...

Two years ago, when DIC moved in. Has there been any significant investment in any Tussuads park which wasn't already planned? No.

Has there been any significant change to the way in which any park or attraction is operated, which would not have happened sooner or later? No.

Have DIC invested directly into Alton Towers, Thorpe, or any other Tussuads attraction? Not that we're aware of.

See, this is financial, and business decision which will affect Tussuads as a lead group, not its operational assets. I doubt we'll see any significant changes at operational level. So no changes to the way in which the parks are operated, no changes to future plans, apart from the spontaneous changes that there have been since the beginning of time and the changes we would only come to expect from an ever evolving industry. Each park will continue to develop and expand at its own pace, controlled by its own success. Tussuads pay very little more into their parks, than what they get out of them originally - this will not change.

The change in ownership, will have little to no effect on the parts of Tussauds we see. Just the way it didn't when Charterhouse took them over, and when DIC took them over.

[Green.Wing]

Well there has been massive changes in the running of the theme parks from 2 years ago.

[Mankey]

well theyll have more money, so they will do alot with it... that also means they have more tourist attractions to look after though...

i hope they keep the name "Tussauds" in it somewhere, its got such a ring to it now

[John]

[quote=""mankey52""]i hope they keep the name "Tussauds" in it somewhere,[/quote]

probably not as much as adam does!

On topic: I'm not entire sure this is such good news, OK DIC were a bit useless on the investment side, but there isn't really anything to suggest that will be any different. I don't think there will be a significant change in attitude regarding the running of or investment in any of the parks, but it shouldn't be any worse, and being part of a group involving more parks sounds like a sensible move. The only possible problem is the group will now control most of the UK's best known parks, and this give them too much power.

[Kaz]

[quote=""iriderides101""]Seems interesting but reding it off thorpe park mania it seems we could see better investment in themeing and cleaniness[/quote]

Here's hoping that this transaction will mean increased investment in the parks particularly in terms of theming and cleanliness, areas which many feel have been sub-standard of late.

Hoping - Not fact!

[mezza]

I'm sure the Tussauds name will stay, not least because of one of their biggest brands is the Madamme Tussauds brand - they're not going to start renameing them Madamme Merlin, are they?

Maybe, though, long term, the Tussauds brand will be dropped from the other attractions in the Tussauds group - we might see the 'Merlin' name above the Alton Towers logo.

Merlin do have a lot of experience and expertise in the theme park business, so I do think they will take a more active role than DIC did and I think it will be a positive influence. DIC attractions like legoland are big on theming, customer service, things like that.

[Adam]

[quote=""mezza""]I'm sure the Tussauds name will stay, not least because of one of their biggest brands is the Madamme Tussauds brand - they're not going to start renameing them Madamme Merlin, are they?[/quote]

The company was named after the Madame Tussauds founder, Mr Tussauds, not the other way around. Madame Tussauds the name will not be changing, but my guess is eventually Tussauds as a brand will turn into a division of Merlin Entertainments.

We could all be wrong, maybe they will merge the names, Merlin Tussauds possibly...

*Adäm x

[TenZero]

Wow, only just saw this topic. Excellent news, lets hope we get some new exciting additions to the AP.

[Theme park monkey]

Which is the bigger brand though? Merlin or Tussauds?

because which ever is the bigger brand would probably be the name they would use on all of their attractions (if a name change is on the cards)

i think Tussauds would be better, as Madame Tussauds is infamous around the world and it would be good to see all the attractions (such as legoland etc.) to have the tussauds logo and featured on all the publications such as leaflets and season passes.

[Gazza Smurf]

Like other people have said, I doubt we'll see much of a difference in the park itself. I'm hoping Merlin will pay more attention to the actual theme park than DIC did, seeing as they have past experience with parks (and legoland has pretty awesome theming!) but I doubt it really. I think Alton Towers will keep going as it has been for the last couple of years.

And they better keep the Tussauds name!! I can't imagine the logo any other way

[Adam]

Well think of it this way. A company has bought Tussauds, so they are going to want their name on it somewhere.

It's the same as when Adobe bought Macromedia, the name Adobe was soon used instead...

*Adäm x

[Kaz]

Blackstone also owns 50% of the Universal Orlando resort

Thats one thing I didn't know!