Merlin Entertainments explores sale of aquarium assets amid strategic shift

In recent weeks, Merlin Entertainments, the world's largest theme park operator, has started to evaluate the potential sale of certain aquarium assets as part of its strategy to focus on enhancing investment in its major international sites. The company, co-owned by private equity firm Blackstone and the family behind the Lego brand, has appointed investment bank Rothschild to spearhead this possible disposal process. Merlin’s portfolio includes over 40 Sea Life attractions scattered across various cities in the UK and internationally. Merlin Entertainments manages 11 Sea Life attractions in the UK, notably in London, Birmingham, and Manchester. However, information from sources involved in the sales process confirms that these three locations are definitely not for sale. The current review concerns other aquarium sites across Britain, including places like Blackpool, Brighton, Great Yarmouth, Loch Lomond, Scarborough, and Weymouth. Depending on the interest from potential bidders, some or all of these locations could indeed be part of the sale. This strategic review is limited strictly to Merlin’s aquariums division, highlighting the company’s intention to optimize its portfolio in alignment with long-term growth goals. Earlier this month, a spokesperson from Merlin articulated the commitment of the company to continuously assess its assets, reflecting on necessary investments to ensure alignment with growth strategies. Furthermore, the company plans to launch 24 new rides, attractions, and experiences throughout 2024, including standalone Peppa Pig Theme Park in Dallas Fort Worth and the inaugural LEGOLAND Resort in Shanghai. The move to possibly sell aquarium assets and focus investment elsewhere comes at a time of leadership transition for Merlin. The company has been operating without a permanent chief executive since Scott O'Neil stepped down late last year, with Fiona Eastwood currently serving in an acting capacity. The reshuffling of priorities and assets may make way for new strategic developments and partnerships, like the recent announcement of a collaboration to introduce Minecraft-themed experiences across Merlin locations globally. This comes in the backdrop of a competitive entertainment landscape requiring adaptive strategies and a keen focus on core attractions.