Merlin Entertainments Ltd is a British-based entertainments company headquartered in Poole, Dorset. It was listed on the London Stock Exchange until it was acquired by a consortium of Kirkbi A/S in November 2019.
History
In December 1998, Nick Varney, Andrew Carter 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 2004. In May 2005, the company was acquired from Hermes by a division of The Blackstone Group which later started a major expansion. Over the years, Merlin acquired Legoland, Gardaland, an Italian theme park, and The Tussauds Group. The company was first listed on the London Stock Exchange in 2013.
Legoland
When the Legoland theme parks came up for sale, Varney wanted to buy it but Hermes did not want to invest more capital. After the sale of Merlin to Blackstone Group, the company negotiated to buy control of Legoland for about £250 million in 2005, then merged it with Merlin. As part of the deal, Kirkbi A/S, the investment arm of LEGO owners, took a share in Merlin Entertainments.
Tussauds
In May 2007 Blackstone purchased The Tussauds Group, owner of the Madame Tussauds celebrity wax attractions, for US$1.9 billion; this company was merged with Merlin and has since been managed by Merlin. After the Tussauds acquisition, Dubai International Capital, the previous owner, received a 20% stake in the combined entity as well as £1.03bn in cash. On 17 July 2007, as part of the financing for the Tussauds deal, the freeholds of Alton Towers, Thorpe Park, Warwick Castle and Madame Tussauds were sold to private investor Nick Leslau and his investment firm Prestbury, with a subsequent leaseback agreement. Although the attraction sites are owned by Leslau, they are operated by Merlin based on a renewable 35-year lease.
Florida
On 15 January 2010, Merlin Entertainments bought Cypress Gardens, a defunct theme park in Winter Haven, Florida. It was reopened as Legoland Florida theme park. Reports in early October 2017 indicated that Merlin Entertainments was considering a takeover of Sea World in Orlando but on 11 October, the company said it was no longer involved in such discussions.
Merlin had planned to go public in the early 2000s, 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 which is no longer involved with the company, 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 – 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. On 8 November 2013 Merlin floated 30% of the company on the London Stock Exchange valuing the private equity-backed company at almost £3.4bn. In June 2019 the company's board agreed to recommend a takeover offer of £4.8 billion from Kirkbi, CPP Investment Board and The Blackstone Group. The takeover was approved by the high court in November 2019.
eOne's multi-territory partnership with Merlin
On 5 December 2019Entertainment One announced a new multi-territory partnership with Merlin that will open an interactive PJ Masks nautical-themed trail throughout the company's Sea Life aquariums worldwide starting February 2020. Further tying into the collaboration between Merlin and eOne, select episodes of PJ Masksseason 4 will feature underwater adventures.
