Knott’s Owner to Repurchase Units
The company that owns Knott’s Berry Farm said Monday it will repurchase as much as $25 million of its partnership units, whose value has fallen 35% in 18 months, because they are an “attractive investment” at that price.
The move by Cedar Fair LP of Sandusky, Ohio, could boost the price of the units by signaling that the company is confident of its prospects and by reducing the number of units in public hands. Cedar Fair units closed Monday at $19 on the New York Stock Exchange, down 25 cents for the day and $10.44 below their May 26, 1998, peak of $29.44.
Cedar Fair has added two major thrill rides at Knott’s since buying the Buena Park amusement park in late 1997. It plans to open the world’s tallest water-chute ride and a separate water park there next summer. All told, it is spending $110 million on new attractions in the coming year at its five amusement parks, including what it bills as the world’s tallest and fastest roller coaster at its flagship Cedar Point park in Sandusky.
Attendance at Knott’s has flattened out at about 3.5 million visits a year and is flat to lower at Cedar Fair’s other parks, mirroring an industrywide trend.
