A consortium led by the family that controls the Lego empire has agreed a £5.9bn takeover of Merlin Entertainments, the operator of Legoland, Alton Towers, Madame Tussauds and the London Eye. The deal values Merlin's shares at £4.8bn, with an additional £1.1bn in debt.
The consortium is 50% owned by Kirkbi, the investment company of the Kirk Kristiansen family, with the other half held by private equity firm Blackstone and Canadian pension fund CPPIB. The offer of 455p per share represents a 15% premium to the closing price before the announcement, though it is below the company's value two years ago when shares traded as high as 537p.
Merlin chairman Sir John Sunderland cited multiple fatal terrorist attacks in London and Manchester as having long-lasting effects on visitor numbers to city centre attractions. He also noted that the company had turned down four earlier inadequate offers from the consortium. The deal is not expected to affect most of Merlin's 28,000 employees, though some jobs related to public company reporting may be cut.
The acquisition returns Merlin to private ownership six years after Kirkbi and Blackstone floated the company on the London Stock Exchange. The investors said they recognise the need for significant long-term investment in Merlin's attractions, as consumer trends shift towards spending on experiences rather than goods.
Merlin has struggled as a public company, with its share price performance since 2013 roughly matching the FTSE 350 index. The company was also affected by a 2015 rollercoaster collision at Alton Towers that left five passengers with life-changing injuries. The takeover is seen as a coup for activist investor ValueAct, which had urged the board to find a buyer.
