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Madame Tussauds owner Merlin Entertainments has said it approves of a £5.9 billion takeover bid from the family owners of Lego and private equity firm Blackstone.

The group already had an interest in Merlin after the company bought Legoland - but has now moved to take control.

Kirkbi chief executive Søren Thorup Sørensen said: "As the long-term owner of the Lego brand and as a strategic shareholder in Merlin since 2005, we have great pride and passion for this amazing company, its management team and its employees.

"With a shared understanding of the business and its culture, we believe that this group of investors has the unique collective resources necessary to equip Merlin, including the Legoland Parks and Legoland Discovery Centres, for their next phase of growth.

"We are committed to ensuring Legoland and the other activities in Merlin reach their full potential, which we believe is best pursued under private ownership, in order to deliver fantastic experiences to visitors of all ages around the world."

(Image: Getty)

Kirkbi - which is the investment vehicle of Lego's founding family - was joined by private equity firm Blackstone and investment firm CPPIB in the bid.

Merlin controls theme parks and attractions across the UK and beyond - including Alton Towers, Sea Life, Peppa Pig World of Play, Chessington World of Adventures, The Blackpool Tower, the London Dungeons, Warwick Castle and Thorpe Park as well as Legoland parks around the world.

Merlin chairman Sir John Sunderland said: "Merlin is a global leader in location based, family entertainment, with a unique portfolio of brands and attractions spanning 25 countries and four continents, and with a proven strategy that has delivered over many years."

He added that the board had rejected a number of proposals from the consortium before settling on this one - which he thinks "represents an opportunity for Merlin Shareholders to realise value for their investment in cash at an attractive valuation".

"We are therefore unanimously recommending it to our shareholders," he added.

The takeover has valued the company at 455p a share, representing a 15% increase on the FTSE 100 firm's 395p a share value at the end of trading on Thursday.

Hargreaves Lansdown equity analyst George Salmon said: “The deal means ownership of Merlin is going full circle, and back to a consortium including former owners private equity group Blackstone and Kirkbi, the Lego family investment company.

"Perhaps fittingly, it has had plenty of ups and downs during its 6 years on the UK stock market. An enchanting long-term rollout story ensured the shares enjoyed a couple of strong years initially, but the impact of terror attacks in London meant the magic wore off and the agreed price in this deal is lower than where the stock traded at as recently as October 2017."

(Image: Richard Chapman)

CPPIB managing director Ryan Selwood said: "Merlin has established itself as a globally diversified, world-class operator of themed attractions and entertainment.

"Its ability to partner with a number of leading global brands to deliver high-quality family entertainment has been key to Merlin's success.

"Through close collaboration with our partners, we look forward to promoting the steady growth, long-term capitalisation and continued international expansion of this business."