DOJ, state officials talking about amusement parks
The U.S. Department of Justice has contacted the governor’s office as part of a probe into the planned corporate merger of two giant, international amusement-park operators, including the owner of Six Flags New England, including its location near Springfield, Massachusetts.
According to emails by the state Department of Economic and Community Development released to CT Insider under the Freedom of Information Act, the DOJ’s Antitrust Division wants Connecticut’s perspective on the New England amusement park market, and how the projected $8 billion merger of the Texas-based Six Flags, with its regional attraction in Agawam, Massachusetts, and Ohiobased Cedar Fair, might affect consumers.
“We are investigating the proposed merger between Cedar Fair and Six Flags, and as part of our review, are interested in understanding more about the amusement parks industry in Connecticut and the broader New England region,” wrote Sarah Oxenham Allen, special counsel in the Justice Department’s antitrust division. In particular, the DOJ said earlier this month that it wanted to speak with experts on Connecticut tourism.
Anthony Anthony, Connecticut’s chief marketing officer, said in an interview Friday afternoon that the state’s attractions, including Lake Compounce Amusement and Water Park and Quassy Amusement and Water Park, bounced back in recent years, along with the state’s entire leisure industry.
“The tourism industry in Connecticut has seen all-time high numbers of visitation and visitor expenditures,” Anthony said. “We’re very excited about the growth and how quickly the industry recovered following the pandemic. Amusement parks are a big part of why Connecticut is a great place to live, work and play. We fully intend on marketing Quassy and Lake Compounce as two of the premiere attractions in the state.”
Anthony noted that visitation to Connecticut rose nearly 2 percent last year from 2022, with 67.9 million visitors, the highest in state history. Additionally, a report on accommodations shows that occupancy revenue reached an alltime high at $1.173 billion last year, up 6.7 percent from 2022.
In December, Reuters reported that one of Cedar Fair’s biggest investors complained that the company was denying shareholder input on the planned merger.
Six Flags has 27 parks and attractions in the U.S., Canada and Mexico. Cedar Fair, headquartered on Lake Erie in Sandusky, Ohio, near Cleveland, is the site of its flagship, Cedar Point, which first opened in 1870. The company now includes amusement parks, resorts and water parks. According to the company, its 15 parks, including one in Toronto, had 27 million visitors in 2022.
Similar but muchsmaller and closer-tohome Connecticut attractions include the Lake Compounce in Bristol and Southington; and Quassy in Middlebury, both of which are dwarfed by Six Flags New England. Entry tickets in 2024 will range from $45 online, to $84.99 at the Six Flags gate, while Lake Compounce entry will be $34.99 per person for online tickets and $64.99 at the gate, according to the respective websites. Daily Quassy prices will range from $31.99 for youngsters to $41.99 for people “over 45 inches tall,” according to its website,
Lake Compounce started in 1846 and has about 45 amusement and water attractions, a fraction of Six Flags New England. Quassy, originally named Lake Quassapaug Amusement Park, first opened in 1908 and has about 20 rides.
Cedar Fair’s CEO Richard Zimmerman said in a Thursday statement that since the since the proposed merger was announced in early November, the company has been pleased with the reaction of shareholders and other investors.
“We look forward to completing our combination with Six Flags and delivering on the compelling value creation opportunities ahead, which we believe are greater than what either company can achieve independently,” Zimmerman said. “Cedar Fair and Six Flags continue to work constructively with the DOJ in its review of the merger and continue to expect it will be completed in the first half of 2024. We look forward to capitalizing on the opportunities ahead for the combined company.”