Merlin, founded in 2005, is the second largest location-based entertainment (LBE) business globally, with a portfolio of brands and parks in 25 countries on four continents. Over the years, Merlin has partnered with a number of global brands in or adjacent to the family entertainment space. Look for some new co-branding: LEGO.
The Merlin Board is recommending to shareholders that a partnership of KIRKBI and Blackstone buy the company, with the latter acting as equity partners and the Canada Pension Plan Investment Board (CPPIB) as co-investor.
It just so happens that KIRKBI is the long-term owner of the LEGO® brand and shareholder in Merlin since 2005. The agreement means the LEGO Group grants Merlin license to the LEGOLAND® wordmark and trademarks for use in amusement parks and ancillaries such as accommodations and mid-size attractions. LEGOLAND® currently has eight LEGOLAND® Parks and 23 LEGOLAND® Discovery Centers, with more planned.
LEGOLAND® is a strong asset in the Merlin family of brands, and the acquisition would mean increased collaboration on product, brand, and IP development. Details remain to be finalized.
The proposed deal enables Merlin, including the LEGOLAND® Parks and LEGOLAND® Discovery Centers—which have been long-rumored to be planning their next phase of growth—to do so under private ownership.
Merlin’s board of directors, impressed with the attractive valuation, is unanimously recommending that shareholders approve the offer and be purchased. Blackstone is partnering with KIRKBI and CPPIB to acquire a business it knows very well. Nick Varney will continue as CEO of Merlin.
