CBS Sells Theme Parks

CBS(CBS Quote - Cramer on CBS - Stock Picks) agreed to sell its Paramount theme parks business to Cedar Fair(FUN Quote - Cramer on FUN - Stock Picks) for $1.24 billion in cash.

CBS put the theme parks up for sale earlier this year. The transaction is expected to close in the third quarter, pending regulatory approval.

"This transaction offers a unique opportunity for us to acquire a world-class asset portfolio," said Cedar Fair's Chairman Dick Kinzel, in a statement. "It is not every day that we have the chance to purchase five great family-oriented parks that fit extremely well with our existing parks. This acquisition will provide exciting new growth opportunities and the potential for meaningful incremental free cash flow as we realize $20-$30 million in annual cash flow synergies over the next 3-5 years."

"We're very pleased with the value we received from the sale of this terrific asset," said CBS Chief Executive Leslie Moonves, in a statement.

The company announced its intention to divest Paramount Parks on January 26. It said Paramount Parks will remain in full operation throughout the divestiture process.

A source familiar with the auction said that one private equity group remained in the bidding process for the properties right down to the wire.

Sandusky, Ohio-based Cedar Fair operates seven theme parks and five water parks across the nation. Paramount consists of five parks including Great America in Santa Clara, Calif., and Canada's Wonderland in Toronto.

CBS's Moonves told TheStreet.com last week that his company will sell 35 small market radio stations in an effort to focus on its larger market operations.

On Monday shares of Cedar Fair were set to open at $27. CBS shares were up 6 cents to $25.27.