The Tussauds Group acquired by Merlin Entertainments

By acquiring the entire portfolio of The Tussauds Group, which generated in EBITDA during the previous fiscal year, Merlin Entertainments executes a transformative leveraged buyout to create the world's second-largest visitor attraction operator after Disney. Finalized in March 2007, this cross-border transaction officially transfers control of the target from Dubai International Capital (DIC) to the Blackstone-backed acquiring entity. The financial architecture of the takeover involves a massive all-cash consideration paid to the exiting sponsor, while simultaneously structuring a significant equity reinvestment mechanism. Specifically, DIC retains a strategic 20% minority stake in the newly combined leisure conglomerate, rolling over its capital to invest alongside Blackstone and the LEGO Holding/KIRKBI Groups. To fund this aggressive consolidation move, the buyer secured fully committed debt financing arranged by a banking syndicate comprising Goldman Sachs, HVB, and Lehman Brothers, with a comprehensive refinancing planned immediately post-closing. Strategically, this transaction merges two highly complementary operational frameworks, amalgamating a combined portfolio of 50 attractions and four hotels spread across 12 countries in Europe, North America, and Asia. By internalizing the target's iconic assets (including the London Eye and Madame Tussauds) the acquiring sponsor intends to accelerate international expansion plans, particularly focusing on the rapid rollout of new museum locations and the development of on-site hotel accommodations. The integration roadmap designates Nick Varney as the Chief Executive Officer of the enlarged group, while the target's former CEO, Peter Phillipson, transitions to the role of non-executive Chairman. This structural shift drastically scales the buyer's global footprint, combining overlapping management expertise and operational synergies to support a workforce of over 13,000 employees and a combined visitor base exceeding 30 million annual guests. Advisory duties for this landmark transaction were executed by Goldman Sachs for the controlling sponsor, while Lehman Brothers and UBS advised the buyer, and Citigroup provided exclusive financial counsel to the sellers.