Private equity firm Blackstone Group has announced that it is buying the owner of Madame Tussauds waxworks museums for around 1 billion pounds ($1.92 billion) cash. The acquisition will also create the world’s second-biggest theme park group behind Walt Disney. Blackstone owned Merlin Entertainment has said that under the agreement it would pay Dubai International Capital 1.028 billion pounds in cash and a 20 percent stake in the combined company.
Dubai International Capital, the private-equity company had bought Tussauds in the year 2005 for £800 million. The combined business would overtake Universal Studios, which attracts 24 million people a year to its movie-themed resorts. The 11 Disney parks still remain the obvious leader, attracting around 100 million visitors a year.
Tussauds also manages the Alton Towers, Thorpe Park and Chessington World of Adventures theme parks while Merlin operates 38 major attractions worldwide including as Legoland, Sea Life, Gardaland and Earth Explorer. Blackstone has ambitious planning to become the market leader in tourist based business. The group plans to invest between 60 million and 90 million euros (40.8 million-61.3 million pounds) every year to launch about four or five attractions.
New York based Blackstone, is planning to use the acquisition as a platform to expand further to become the world leader in location based, branded family entertainment. The takeover will also help Merlin to add Britain to its markets. Britain reportedly attracts around 32.2 million tourists from overseas each year. Moreover, at present the company is seems to be more focused on expanding its brands in America.
