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Busch Bid May Spin Off Parks

Tribune file photo by KELVIN MA (2007)

Members of the media and local roller coaster clubs take a ride on the new floorless Sheikra roller coaster at Busch Gardens Media Day on June 15, 2007.

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By TED JACKOVICS

The Tampa Tribune

Published: May 28, 2008

TAMPA - Busch Entertainment Corp, which operates Busch Gardens Tampa Bay along with nine other U.S. theme parks, could become an attractive buyout target if a Belgian brewer moves ahead with a $46 billion takeover of Anheuser-Busch Companies Inc., according to published reports.

The Financial Times, based in London said in published reports that InBev NV is considering a bid to acquire Busch Entertainment parent Anheuser-Busch Cos., based in St. Louis. Neither Busch Entertainment nor its parent company would provide any details of discussions Tuesday.

InBev probably wouldn't be interested in operating the company's theme park division, which accounts for about 7 percent of Anheuser-Busch's $19 billion annual revenue, The Financial Times reported on its web site, ft.com.

The Financial Times reported that a takeover of Anheuser-Busch would be financed, in part, by the sale of the entertainment division. A sale of Busch Entertainment properties and an Anheuser-Busch packaging unit could net $6 billion, the Financial Times reported.

Busch Gardens in Tampa attracts an estimated 4.5 million annually.

Paul Ruben, North American editor for Park World Magazine, based in Rochester, N.Y., said Busch Entertainment could be a successful operation without the parent company's backing.

"Busch Entertainment would do well as a standalone company without brewery company support," Ruben said. "They have been profitable and would continue to be profitable.

"Whether Busch Entertainment would fall under new ownership or not, there is no doubt in my mind their parks would continue to operate well."

Ruben said Busch Entertainment ranks among the top three U.S. theme park operators along with Walt Disney Co. and Universal Studios. He said he would be surprised if either of those corporations would express interest in buying Busch Entertainment and its theme parks.

"You never know who might emerge from the woodwork," Ruben said. "Perhaps it could be some of the current stockholders of Anheuser-Busch or a big financial investment company."

Ruben said regional theme parks such as Busch Gardens Tampa Bay would continue to perform well despite the current U.S. economic slump and high gas prices, but parks in Orlando and other tourism destinations could suffer if the downturn continues.

"Because Busch Gardens Tampa Bay does not have hotels as part of its property, it is more of a regional theme park, unlike Sea World and Disney in Orlando, which are in ground zero for theme parks relying on tourists," Ruben said.

News reports of a potential buyout have circulated in recent weeks, as Anheuser-Busch continues to face tough competition in the United States while consolidation is under way in the industry.

Anheuser-Busch shares closed Tuesday at $56.75, up 14 cents.

Reporter Ted Jackovics can be reached at tjackovics@tampatrib.com or (813) 259-7817.

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