Research into Legoland purchase

[roadtripper]

Doing more research on Blackstone's acquisition of Legoland, I've found some interesting articles:

Merlin was bought by Blackstone in 2005 after it was bought from Hermas Private Equity. Hermes bought Merlin in 2004 and made 2.5 times it's initial investment being selling to Blackstone.

Blackstone bought a 70% interest in Legoland parks only. Lego continued to hold a 30% interest in 2005 when the parks were sold to Blackstone. Lego wanted to retain interest to ensure the parks would remain Lego themed, etc. The parks are not part of the Lego company. Lego wanted to focus on it's toy division. They admitted that Legoland in CA received $11 million in improvements in 2004 and 2005, but the financial health of Lego prevented it from making more improvements. Lego lost $34 million in 2004

In 2005, John Ford, vice president of Blackstone is quoted as saying "Blackstone's goal is to acquire and expand businesses before selling them off over a three to seven year period.".

He also said "The whole idea for us being in business is to acquire companies, expand and make them better and sell them off.".

Below are links to the 2 articles referenced.

http://legacy.signonsandiego.com/uniontrib/20050714/news_1b14lego.html

http://www.telegraph.co.uk/finance/2916183/Blackstone-breaks-into-Dungeons-with-102m-purchase.html

Another good one.
http://www.spiegel.de/international/0,1518,470570,00.html

 

[jt04]

Doing more research on Blackstone's acquisition of Legoland, I've found some interesting articles:

Merlin was bought by Blackstone in 2005 after it was bought from Hermas Private Equity. Hermes bought Merlin in 2004 and made 2.5 times it's initial investment being selling to Blackstone.

Blackstone bought a 70% interest in Legoland parks only. Lego continued to hold a 30% interest in 2005 when the parks were sold to Blackstone. Lego wanted to retain interest to ensure the parks would remain Lego themed, etc. The parks are not part of the Lego company. Lego wanted to focus on it's toy division. They admitted that Legoland in CA received $11 million in improvements in 2004 and 2005, but the financial health of Lego prevented it from making more improvements. Lego lost $34 million in 2004

In 2005, John Ford, vice president of Blackstone is quoted as saying "Blackstone's goal is to acquire and expand businesses before selling them off over a three to seven year period.".

He also said "The whole idea for us being in business is to acquire companies, expand and make them better and sell them off.".

Below are links to the 2 articles referenced.

http://legacy.signonsandiego.com/uniontrib/20050714/news_1b14lego.html

http://www.telegraph.co.uk/finance/2916183/Blackstone-breaks-into-Dungeons-with-102m-purchase.html

Another good one.
http://www.spiegel.de/international/0,1518,470570,00.html

There is talk of an IPO this spring. I'm no investor or expert on these type business dealings but I'd guess Merlin is the central Florida tourism for the long haul. And I think there is room for them and others to join forces to compete with Disney quite competitively. Never thought I would say that. Never.

 

[roadtripper]

I was reading a more recent article that mentioned a stock offering or something. It also sounds like they may hang with the parks a while longer than they originally stated, but in the end they would probably sell for good money, if anyone can offer it to them.