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By JACOB SCHNEIDER

The Tampa Tribune

Published: August 13, 2008

Theme park industry analysts are buzzing that a small group of suitors may be emerging to make a play for Busch Gardens and its sister theme parks, currently owned by beer giant Anheuser-Busch.

Talk of a proposed deal for the company's theme park division comes on the heels of Anheuser-Busch, the maker of Budweiser and Michelob, agreeing to be acquired by Belgian beer giant InBev, maker of Becks and Stella Artois. At the time of the $52 billion takeover, InBev said it would partially finance the deal by selling "non-core assets," which analysts agree includes Busch's theme park unit.

That unit, Busch Entertainment Corp., is made up of 10 theme parks, which include its Florida properties, Busch Gardens Tampa Bay, Adventure Island and SeaWorld Orlando.

According to some foreign news reports, bidding for the unit may be heating up. Last week, The Telegraph, a London-based newspaper, reported that the owner of British theme park giant Merlin Entertainment was preparing a bid for Busch Entertainment. Meanwhile, the Times of London reported that Parques Reunidos, a Spanish theme-park owner, has hired bankers to prepare a bid.

Other potential suitors mentioned in foreign news reports include Middle East-based Dubai World, and Walt Disney Attractions has been mentioned in media reports as a possible buyer. Industry analysts, however, peg them as unlikely to make a play for Busch Entertainment.

A Disney spokesman declined to comment on media reports, and representatives for InBev, Parques Reunidos and Merlin were unavailable to respond Tuesday to requests for comment.

Though it is unclear whether the reports are based on interest from the companies or attempts by InBev to kick off a bidding war for its properties, they seem to confirm what analysts have been saying since the InBev deal was announced: The most likely buyers for the major theme park chain are overseas.

They also suggest the Busch Entertainment parks will be sold together rather than individually.

Analysts say that tight credit markets have made a major purchase by an American theme park operator such as Six Flags unlikely, but that has created an opportunity for well-capitalized foreign park operators eager to make inroads in the United States market.

Busch Entertainment ranks among the top five theme park operators in the United States, with 2007 attendance of 22.3 million, according to the Themed Entertainment Association.

Busch Gardens Tampa Bay was its largest draw, with an estimated 14.5 million visitors. Lehman Bros. estimated the value of the Busch Entertainment unit at $2.58 billion before the sale.

Merlin, which owns Legoland, the toy-inspired parks in California and Illinois, as well as the London Eye and other British attractions, is best positioned for a large acquisition, said John Gerner, an analyst with Leisure Business Advisors.

"In addition to having that financing clout, they have expressed interest in establishing an international presence," Gerner said. Merlin is owned by American private equity group The Blackstone Group.

Parques Reunidos, owned by a British private equity firm, is smaller than Merlin, but expressed its intention to compete in the United States with the purchase of the five Kennywood Entertainment parks last year, said Paul Ruben, North America editor for Park World magazine. Kennywood parks are in Pennsylvania, Connecticut and New Hampshire.

"They can afford it," Ruben said.

Though theme park titan Disney is rumored to be considering a bid for the parks, Gerner said he doesn't see any motivation for Disney to buy the Busch unit. Disney was interested in buying the SeaWorld chain two decades ago but since has moved on to a business model based on developing its own attractions, he said.

"Why Disney would come back to the table and buy those parks is questionable," he said. "I'm not aware of them buying other attractions. That's just not something they do. Their parks are heavily branded."

Ruben agreed, noting that Disney already has a strong presence in Florida.

"If Disney came in, they'd want to Disneyfy the park and make it completely different than it is today. Anything's feasible. But why?" he said.

A wild card may be Dubai World, a business conglomerate based in Dubai, United Arab Emirates that is developing The Worlds, an artificial archipelago of resort islands. Dubai World hasn't previously expressed intentions of investing in theme parks outside the Middle East, but is considered by experts to have the capital to do so.

But Gerner added that with a sale of this magnitude, industry analysts could be surprised by the winning suitor.

"Even though one may not be from a strategic position interested in buying these parks, there are many companies that could be interested in buying them at a good price," he said.

Reporter Jacob Schneider can be reached at jschneider@tampatrib.com or (813) 259-7850.

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