London Eye, Legoland and Madame Tussauds owner Merlin entertains float idea as it hits £1 billion
Merlin Entertainments, the owner of the London Eye, Legoland and Madame Tussauds, today said a flotation of the business is under “active consideration” for this year, as the group’s revenues smashed through the £1 billion barrier.
The operator of Thorpe Park in Surrey is expected to make a decision towards the end of its third quarter, with a potential listing — forecast to value it at more than £3 billion — in New York and London on the table.
Nick Varney, chief executive of Merlin, which is backed by the private-equity giants Blackstone and CVC, said: “We have always said we would look to 2013 to 2014 as the next possible window for floating.”
Merlin today posted a 16.5% uplift in operating profits to £258 million over the year to December 29, despite “one of the most challenging years we have experienced since founding Merlin in 1999”.
Merlin, which has net debt of £1.3 billion, was hit by three factors: the eurozone crisis dampening spending on the Continent; the wettest summer on record in northern Europe; and the London Olympics sucking spending and traffic away from its UK attractions. Varney said the Games had attracted 10 million visitors during its peak season, who may otherwise have been customers.
The 15% jump in its revenues to more than £1.1 billion was driven by expansion internationally, such as its first Legoland in Malaysia.
