A Chinese leisure and tourism holding company will become the largest shareholder of embattled theme park operator SeaWorld Entertainment.
Blackstone has agreed to sell its 21% stake in SeaWorld to Zhonghong Zhuoye Group Co.
Zhonghong agreed to pay a 33% on the current share price, valuing the deal at about $448.5 million.
SeaWorld owns 12 theme parks but has been in the doldrums since the 2013 release of controversial documentary ‘Blackfish.’
That sparked more than two years of declining attendance as its share price tanked.
The company has since agreed to end all captive whale breeding and introduce more non-animal attractions.
SeaWorld CEO Joel Manby said the investment reflects the companies’ shared commitment to ‘protect wildlife and the environment.’
Under the terms of the deal SeaWorld will advise Zhonghong on development for new theme parks and water parks.
That could eventually lead to the SeaWorld brand coming to Asia.
"Completion of the deal would bolster the argument for a long-term international licensing opportunity at SeaWorld akin to the international licensing growth story that has been very positive for Six Flags," analyst Barton Crockett of FBR Capital Markets & Co. wrote in an investment note.
Six Flags is building is currently building a theme park and separate theme park in Haiyan, while Universal is following Walt Disney Co with a huge multi-billion theme park in China.
