Anheuser-Busch Theme Parks in Possible Danger

http://money.cnn.com/news/newsfeeds/art ... RTUNE5.htm

NEW YORK -(Dow Jones)- For years Anheuser-Busch Co.'s (BUD) theme parks have been a good venue for marketing its Budweiser beer to millions of parched customers.

Belgian-based InBev NV (INB.BT) announced Thursday it plans to buy Anheuser- Busch for $47 billion, creating the first global beer company. The merger would combine InBev's sales in Western Europe, Latin America and Canada with Anheuser's dominant position in the U.S. market.

Anheuser's amusement parks, including popular SeaWorld and Busch Gardens parks, could be sold if InBev's bid is successful. In a conference call Thursday, InBev said it may sell some of Anheuser's non-core assets.

The theme parks aren't seen as a natural fit for Anheuser. But they're profitable and possibly attractive to private-equity players or other large entertainment companies, experts say.

"The parks perform quite well," said Christian Aaen, a principal at Economics Research Associates. He said a key trend in the theme-park business is the increasing role of private-equity groups, including Blackstone Group's (BX) 2005 acquisitions of European amusement park operator Merlin Entertainments and Legoland Parks.

Some analysts say that Anheuser's entertainment business, which operates about 10 theme parks, is hard to value. That business is a very small part of the company's overall profits and Anheuser has used it more as a way of promoting its image and brands.

InBev is known for keeping a tight rein on costs and running a lean business and so it could decide to sell the entertainment division, which isn't a part of the core beer operations.

Their theme parks serviced 22.3 million visitors in 2007, according to Economics Research Associates. And, the entertainment segment last year had gross sales of $1.3 billion, net income of $162.9 million. According to the company's annual report, the business contributed to 8% of net sales and 6% of net income in 2007.

Anheuser says it's the second-largest theme park operator in the U.S. and competes with Walt Disney Co. (DIS), Six Flags Inc. (SIX), Cedar Fair Entertainment Co. (FUN), and Universal Studios parks owned by General Electric Co. (GE)

In February, Dubai-based property developer Nakheel inked an agreement with Busch Entertainment to develop the Worlds of Discovery theme park on a project being constructed off the emirate's coast.

Although it's unclear exactly which of Anheuser's competitors might be interested in buying its theme parks if they're sold, some operators probably won't be on the short list.

"Six Flags is not a position to acquire anything right now. They are balance- sheet challenged and very, very highly levered," said David Miller, an analyst at SMH Capital.

Meanwhile, Cedar Fair is seen having its hands full after its acquisition of Paramount Parks in 2006 from CBS Corp. (CBS).

Some analysts say Anheuser's theme parks could even survive a merger given they generate healthy profits and good advertising for its products.

"If you go to any of their theme parks, there is always an Anheuser-Busch facility to go and drink their beers and learn about their brewery process," said B. Craig Hutson, an analyst at Gimme Credit. He said there is no evidence this drives incremental sales and lacks obvious synergies with its brewery operations.

"But, it helps create good will. I think they (would) be inclined to keep that business," he said.

- By Angela Pruitt, Dow Jones Newswires, 201-938-2269,angela.pruitt@ dowjones.com

Vive la Belgique!

If they I Love You! with those parks we should attack it

But we can I Love You! with the 'beer' right? [:D]

That would be so terrible.

[Coasterkidmwm]

Burn them all to the ground!

[coolbeans326]

well its not like there's much value for the land BGE sits on. There's not to much out there, and a good majority of the land wouldn't make for good housing, imo.

I'm sure they could turn BGA into some project housing if they wanted though. [:D]

Bah, that sucks.

dang, i have never been to one of those parks, but i was planing on it soon. [:(!]

THAT SUX!!! My cousins dad is part of the bud light/anheuser bush company and I could get free tickets to this place, but now that it might be sold to another company, DAMN IT!

InBev Gardens just doesn't roll off the tounge.

omfg there goes the theming & investments

Yeah this is pretty much a load of crap news to me, Busch Gardens was actually my favorite park here in Florida, they have EVERYTHING! If there sold off to competing companies I hope there sold off too Universal because they will maintain a general upkeep of the place, and then Universal would be one of the DOMINANT theme parks, and that might even encourage them to expand even further.

Dang, BGE is my home park so if the parks are sold I hope they keep up with the theming and whatnot, if they decide to keep it. The atmosphere is one of the greatest things about BGE. This sucks.

inbev is brazilian too, and busch gardens is very famous in brazil.
"inbev gardens" in brazil, who knows?

I think you guys are totally overeacting. THese parks are PROFITABLE. I do not think they will be bought, degraded and shut down. They offer unique rides and unique park atmosphere that most parks cant content with. Also the fact that theres very few of them (including 1 year round) makes it easier to control and maintain.