Blackstone Group LP will nearly triple its money on its seven-year investment in SeaWorld Entertainment Inc. after weathering backlash over the theme-park operator’s treatment of killer whales.
Blackstone agreed Friday to sell its remaining 21 percent stake in the theme-park operator to China’s Zhonghong Zhuoye Group Co. for about $449 million, or $23 a share. The sale caps a return of about 2.7 times the original equity investment by Blackstone and co-investors, according to regulatory filings.
During Blackstone’s ownership, SeaWorld drew public ire from animal-rights activists who objected to the company’s treatment and use of orca whales as entertainment. The documentary “Blackfish,” a critical film about SeaWorld’s performing killer whales, curbed attendance and damped earnings. The shares, which were priced at $27 apiece in a 2013 IPO, hit a low of $12.12 in September 2016 and traded at $18.30 Friday.
The Orlando, Florida-based company cycled through chief executives, and last year said its current generation of orcas will be the last in its care. SeaWorld’s whale shows will only emphasize actions that animals do in nature, rather than feature posing, dancing and kissing orcas, CEO Joel Manby said.
Blackstone, the world’s biggest private equity firm, bought SeaWorld from Anheuser-Busch InBev NV for $2.3 billion in December 2009. The firm and co-investors put in about $1 billion. They paid themselves $610 million in dividends in 2011 and 2012 before taking the company public, and while SeaWorld was listed they sold $1.7 billion in stock.
Selling to Chinese buyers has been a popular exit route for New York-based Blackstone. The firm, led by billionaire Steve Schwarzman, an adviser to President Donald Trump, sold most of Strategic Hotels & Resorts Inc. to Chinese insurer Anbang Insurance Group Co. last year for about $5.5 billion. This month it completed the sale of a 25 percent stake in Hilton Worldwide Holdings Inc. to China’s HNA Group for about $6.5 billion.
This article was provided by Bloomberg News.
