Six Flags Entertainment, North America's largest regional amusement park operator, has agreed to sell seven of its parks in a $331 million deal to real estate investment trust EPR Properties.
The deal, unveiled Thursday, comes in a move expected to lighten Six Flags' recent losses from lower attendance last year and increasing debt totaling more than $5.1 billion tied to its amusement parks and water parks.
The real estate transaction also marks a milestone for Six Flags in its so-called portfolio optimization strategy enhancing its liquidity as it sharpens its operational focus through the company's new president and CEO, John Reilly.
"Since joining the company, I have been clear that Six Flags’ earnings power has been under-realized," Reilly said in a statement, adding that the deal enables Six Flags to concentrate on parks in which it generates its strongest returns and offers greatest long-term upside.
"This transaction will simplify our portfolio, strengthen our balance sheet and position us to execute with greater clarity and discipline," he added.
In all, the seven parks brought in 4.5 million guests in fiscal year 2025 through Dec. 31, generating about $260 million in net revenue for the company. The net proceeds from the deal are expected to be "slightly beneficial" to the company's leverage ratio, officials said.
The seven parks spanning 1,600 acres with 418 attractions are located in five U.S. states and a Canadian province, including:
Michigan: Michigan's Adventure in Grand Rapids.
Minnesota: Valleyfair in Shakopee, near Minneapolis.
Missouri: Worlds of Fun in Kansas City and Six Flags St. Louis.
New York: Six Flags Great Escape in Queensbury.
Texas: Schlitterbahn Waterpark in Galveston.
Canada: La Ronde in Montreal.
“By focusing our resources on the parks that we believe have the highest growth potential, we expect to drive operating leverage, expand margins and accelerate our cash flow generation," Reilly added.
The deal is expected to close by the end of the first quarter or beginning of the second quarter. Six Flags plans to operate its remaining 34 parks across 23 sites in North America for the 2026 season.
EPR's operation plan
EPR, a REIT with $5.7 billion in assets based in Kansas City, Missouri, has teamed up with operator Enchanted Parks, formerly known as Innovative Attraction Management. That firm had filed multiple trademark applications in January, viewed by CoStar News, to run the six U.S. parks. EPR is also working with La Ronde Operations, a company owned by former Six Flags Chairman and CEO Kieran Burke.
This is EPR's largest transaction since 2017, a deal the REIT clocks at $342 million.
"This strategic acquisition represents a compelling opportunity to expand our attractions portfolio with high-quality experiential real estate assets in established regional markets," EPR Chairman and CEO Gregory Silvers said in a statement.
EPR plans to hold a master lease at the acquired parks in which the operating entities will oversee the amusement operations, the REIT said.
The REIT retains the right to utilize the Six Flags brand through the end of 2026, subject to certain requirements. The parks expect to continue regular operating schedules, and season passes for 2026 will remain valid.
Six Flags sits in a complex situation, with the business remaining deep in debt even with the sale of some of its low-performing properties, said Dennis Speigel, founder and CEO of International Theme Park Services, a consultant group for the amusement park industry.
"Everything hinges on the 2026 season," Speigel told CoStar News, adding that his team wasn't surprised by the parks that are expected to trade. "We'll know the situation better soon. Personally, I believe there will be more divesture once they get through the 2026 operating season. I don't see any way to dig out of the hole without selling off some more properties."
For the record
Perella Weinberg Partners was Six Flags' financial adviser. Weil, Gotshal & Manges was legal counsel for Six Flags.