Lego Parent To Acquire Madame Tussauds Owner Merlin

(RTTNews) - Merlin Entertainments plc said Friday that it has agreed to be acquired by a consortium that includes Lego owner Kirkbi, private equity firm Blackstone Group LP and Canada Pension Plan Investment Board, in a deal that values Merlin at about 4.77 billion pounds, or $6.06 billion. Merlin is the owner of the Madame Tussauds wax museums in London and other major cities.

Under the terms of the offer, Merlin shareholders will get 455 pence in cash for each Merlin share held by them. The acquisition implies an enterprise value of 5.905 billion pounds, or $7.5 billion.

Shares of Merlin are gaining almost 14 percent in the regular trading session on the London Stock Exchange.

The acquisition price represents a premium of 15.2 percent to Merlin's closing stock price of 395 pence per share on June 27, 2019, the last business day prior to the announcement.

Kirkbi is the majority owner in Danish children's toy maker Lego. The company already owns 29.6 percent of Merlin following the sale of Legoland Parks to the UK company in 2005.

Merlin was founded in 1999 and listed on the London Stock Exchange in 2013. The company, which has grown to 127 attractions in 25 countries, generated revenue of 1.7 billion pounds and welcomed 67 million visitors in 2018.

Merlin is also the owner of the London Eye Ferris wheel and operator of Legoland theme parks around the world.

Kirkbi and Blackstone private equity funds jointly controlled Merlin in the eight years prior to the company's 2013 public listing.

The acquisition is expected to be completed in the fourth quarter of 2019. Following the acquisition, Merlin will be 50 percent owned by Kirkbi, while Blackstone and Canadian pension fund CPPIB will own the remaining 50 percent stake in Merlin.

"Following an unsolicited approach by a Consortium of investors, and after rejecting a number of their proposals, the Merlin Independent Directors believe this offer represents an opportunity for Merlin Shareholders to realise value for their investment in cash at an attractive valuation. We are therefore unanimously recommending it to our shareholders," Sir John Sunderland, Chairman of Merlin, said.